From JPMorgan to Reed Hastings, here's who has the most at stake ahead of Netflix earnings

Netflix
  • Netflix is set to report first-quarter earnings after the bell on Tuesday.
  • Shares of the streaming giant have enjoyed an impressive 50% rally since last year’s market sell-off, but are currently trading at six-week lows.
  • Markets Insider has compiled a list of Netflix’s largest shareholders to gauge which firms and individuals stand to lose or gain the most in the wake of Tuesday’s market-moving event.
  • Watch Netflix trade live.

The streaming giant Netflix is scheduled to release its first-quarter earnings after the bell on Tuesday. Whichever way the stock moves will have significant implications for its biggest shareholders, – the largest of which holds 9% of all outstanding shares. To be sure, BlackRock, JPMorgan, and other firms own shares for their clients.

Ahead of the company’s results, Markets Insider has compiled a list of Netflix’s largest shareholders, which include CEO Reed Hastings, investment banks like JPMorgan, and asset managers like BlackRock.

To be sure, the options market is signalling a move between 7% and 8% in either direction, which is slightly elevated when compared to the average performance over the last four- and eight-quarters, according to a Susquehanna analysis. after earnings are released. Shares have already surged 50% since the broader market sell-off in December, though they’re still trading 17% below their all-time high hit last June.

“Put differently, the options appear to be pricing in a similar amount of risk as they have ahead of the most recent few quarters,” Chris Jacobson, a derivatives strategist at Susquehanna, said in an email.

More broadly, Wall Street analysts will be paying close attention to the company’s subscriber growth and cash burn after a mixed earnings picture last quarter.

The company’s paid net additions are also likely to be top of mind after Netflix guided first-quarter net additions to be the second-smallest sequential increase in its history.

Netflix paid net additions in the millions.Credit SuisseNetflix paid net additions in the millions.

“We have received many investor questions with regard to the 1Q19 net add guidance, specifically why the implied Q/Q increase appears modest relative to prior years,” Credit Suisse analysts wrote to clients earlier this month in an earnings report preview.

The analysts believe the outlook for Netflix “remains healthy,” and expect a record – though in-line – 8.9 million paid net global additions. They also think the first-quarter will be the trough in terms of year-over-year revenue growth – at 22%.

Here are the 10 largest Netflix shareholders, according to Bloomberg data as of December 31, 2018:


Reed Hastings, Netflix CEO

Total shares: 5,558,947

% of outstanding shares: 1.27

Latest change in position: No change

Source: Bloomberg data as of December 31, 2018


JP Morgan

Total shares: 6,247,932

% of outstanding shares: 1.43

Latest change in position: -1,113,121 shares

Source: Bloomberg data as of December 31, 2018


Baillie Gifford

Total shares: 7,629,879

% of outstanding shares: 1.75

Latest change in position: +136,096

Source: Bloomberg data as of December 31, 2018


Jennison Associates

Total shares: 9,598,888

% of outstanding shares: 2.2

Latest change in position: +792,338 shares

Source: Bloomberg data as of December 31, 2018


State Street

Wikimedia Commons

Total shares: 15,221,963

% of outstanding shares: 3.49

Latest change in position: +178,897 shares

Source: Bloomberg data as of December 31, 2018


T. Rowe Price

Baltimore Sun

Total shares: 15,343,812

% of outstanding shares: 3.51

Latest change in position: +4,119,669 shares

Source: Bloomberg data as of December 31, 2018


Fidelity Management & Research Co. (FMR)

Total shares: 25,791,804

% of outstanding shares: 5.91

Latest change in position: No change

Source: Bloomberg data as of December 31, 2018


BlackRock

Total shares: 27,229,446

% of outstanding shares: 6.24

Latest change in position: No change

Source: Bloomberg data as of December 31, 2018


Vanguard

Total shares: 31,351,391

% of outstanding shares: 7.18

Latest change in position: No change

Source: Bloomberg data as of December 31, 2018


Capital Group

Total shares: 40,013,126

% of outstanding shares: 9.16

Latest change in position: -6,731,645 shares

Source: Bloomberg data as of December 31, 2018


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