Diamonds and Dogs
7/25/12Netflix Inc. (NFLX)
Netflix Inc. looked like it was reaching "The End" today, down 25.02% at $60.28. Netflix saw its shares crash to levels not seen in at least two years as investors showed more animosity toward the company. The company's stock gave up more than $20 a share following the company's suggestion that it might not reach its domestic subscriber growth targets for the year. Late Tuesday, Netflix said it expects to gain 1 million to 1.8 million new video-streaming subscribers during its current, third quarter. If estimates are correct this would mean Netflix would potentially have to add more than 3 million subscribers in the fourth quarter to reach its target of 7 million new subscribers this year. Not reaching the new subscriber goal left investors giving Netflix two thumbs down.
Lumber Liquidators Holdings Inc. (LL)
Lumber Liquidators made it out of the woods today, up 26.80% at $41.31. The United States largest hardwood floor retailer saw its shares grow sky high after it announced its second quarter earnings. Net sales increased 19.9% to $210.3 million and comparable store net sales increased 12.4%. Furthermore, net income increased 130.4% to $12.2 million, or $0.43 per diluted share. The company also went on to raise its full year revenue guidance to a range of $750 million to $775 million and EPS guidance to a range of $1.30 to $1.42. Lumber Liquidators CEO Robert Lynch said, "Our value proposition continues to resonate well with consumers, and as we look toward both the back half of the current year and into the next, we are confident in our ability to continue to drive traffic, improve our operations, expand our operating margin and grow our footprint."