Question
1) 0n 4/21/2020, Netflix reported 16 million new subscribers during the first quarter of 2020. Streaming services are a bright spot during this economic shutdown
1) 0n 4/21/2020, Netflix reported 16 million new subscribers during the first quarter of 2020. Streaming services are a bright spot during this economic shutdown due to the Coronavirus outbreak, but the company faces negative factors as well. Increased operating costs may explain the results, discussed late in the article, that profit of $709.1, or $1.57 a share, was achieved while "the company was expected to earn $1.64 a share." Nonetheless, shares rose in after-hours following Netflix's release of its video to discuss financial results in the first quarter of 2020., was achieved while "the company was expected to earn $1.64 a share." Nonetheless, shares rose in after-hours following Netflix's release of its video to discuss financial results in the first quarter of 2020.
So, how does the breakdown of Netflix's new subscribers by geographic area help to assess the company's operating results?
Do you think that assessing financial information in addition to subscriber numbers by geographic area would help to further understand Netflix's performance during this period?Explain your reasoning.
Is there a specific requirement to provide information about the geographic areas discussed by Netflix and reported in this article?
Explain your answer and provide supporting citations to professional literature.
2) In April 2020, it is reported that Expedia is expected to raise capital from private investors and debt financing.Apollo and Silver Lake are purchasing $1.2 billion in Expedia preferred stock, while the Seattle Internet commerce company is also raising $2 billion in new debt financing.The cash could tide the Seattle company over until travel restrictions are lifted, and the economy can recover from its steep drop-off. Apollo co-lead of private equity David Sambur and Silver Lake co-CEO Greg Mondre will join Expedia's board.
So, in connection with declining demand, what steps has Expedia taken with respect to its balance sheet and investor communication, and why?
What led to the departure of Expedia's CEO and CFO in December and how has Expedia been managed since?
What do you think are the risks and opportunities associated with a prospective investment in Expedia?
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