Netflix, Inc. (NFLX) Moves to Amazon’s AWS – Abandons In-House Data Centers

Share
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

While Netflix, Inc. (NASDAQ:NFLX) grows by leaps and bounds, expanding into new countries and the living rooms of millions of new customers each month, the company today has said that they’ve given up on trying to manage their own in-house data centers. So who do you turn to when you need cloud data managed right? If you guessed Amazon (NASDAQ:AMZN), then you are correct!

That’s right, Netflix, Inc. (NASDAQ:NFLX) has moved all their IT over to Amazon’s AWS cloud. This comes after seven years of Netflix trying their hardest to migrate it’s data in-house, but ultimately the amount of data was just too much to handle .

“Supporting such rapid growth would have been extremely difficult from our own data centres; we simply could not have racked the servers fast enough,” Netflix said.

While no one wants to give money to a third party for a service that they could possibly bring in-house, in this case, the move seems to make sense, allowing the company to expand rapidly without worry. Shares of both Netflix, Inc. (NASDAQ:NFLX) and Amazon are up close to 1% in pre-market trading this morning. The stock closed at $86.35 during the last trading session. It is down 9.80% since July 9, 2015 and is downtrending. It has underperformed the S&P500 by 0.93%.

From a total of 27 analysts covering Netflix (NASDAQ:NFLX) stock, 21 rate it a “Buy”, 0 a “Sell”, and 6 a “Hold”. This means that 78% of the ratings are positive. The highest target price is $175 while the lowest target price is $72. The mean of all analyst targets is $132.33 which is 53.25% above today’s ($86.35) stock price. Netflix was the topic of 40 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Drexel Hamilton initiated shares on January 14 with a “Buy” rating. Credit Suisse maintained shares with a”Neutral” rating and a $124 target share price in their report from an October 15. Robert W. Baird downgraded NFLX stock in a recent report from January 4 to a “Neutral” rating. JP Morgan maintained the rating on October 15. JP Morgan has a “Overweight” rating and a $137 price target on shares. Finally, FBR Capital maintained the stock with a “Outperform” rating in a report they issued on an October 15.

The institutional sentiment increased to 1.54 in Q2 2015. It’s up 0.29, from 1.25 in 2015Q2. The ratio improved, as 58 funds sold all their Netflix, Inc. shares they owned while 194 reduced their positions. 149 funds bought stakes while 238 increased their total positions. Institutions now own 639.63 million shares which is 1081.93% more than the previous share count of 54.12 million in 2015Q2.

Srs Investment Management Llc holds 40.42% of its total portfolio in Netflix, Inc., equating to 11.81 million shares. Technology Crossover Management Vii Ltd. owns 5.04 million shares representing 34.23% of their total US portfolio. Moreover, Ctc Llc has 33.44% of their total portfolio invested in the company, equating to 645,718 shares. The Pennsylvania-based Barton Investment Management has a total of 29.76% of their portfolio invested in the stock. Tiger Global Management Llc, a New York-based fund reported 18.00 million shares owned.

Since February 25, 2015, the stock had 0 insider buys, and 11 selling transactions for a total of $32.60 million in net activity. Barton Richard N sold 2,800 shares worth $281,260. Hastings Reed sold 86,037 shares worth $8.68M. Battle A George sold 49,000 shares worth $5.29 million. Cranz Tawni sold 1,512 shares worth $190,179. The insider Peters Gregory K sold 6,545 shares worth $841,491.

Netflix, Inc. is a provider of Internet television network. The company has a market cap of $36.96 billion. The Firm has over 57 million streaming members in over 50 countries. It has 307.53 P/E ratio. The Company’s members can watch more than two billion hours of television shows and movies per month, including original series, documentaries and feature films on Internet-connected screen.