Connect with us


Amidst Low Revenue, Wedbush Upgrades Netflix




A United States brokerage firm, Wedbush says it has upgraded a popular online streaming platform,  Netflix from Neutral to Outperform, despite the challenges of revenue and decline in subscribers facing the company.

Wedbush wrote on Monday that the streaming company “is positioned to grow,” citing the staggered releases of “Ozark” and “Stranger Things.”

Wedbush provides clients with a wide range of securities brokerage, wealth management, and investment banking services. 

Equity research analyst at Wedbush, Michael Pachter, doubled down on the streaming giant during an interview with Yahoo Finance Live.

“The stock was overvalued,” the analyst said, relating to its November 2021 peak of $690 a share. 

“This is not a dumb management team. They’re very smart, they have a ton of content, and they’ve made tens of billions of dollars of investment in content,” he further said.

Investors King gathered that Netflix lost 636,000 customers in the U.S. and Canada following a roughly 10 per cent price increase. That reflects a miss of around 750,000 subscribers (compared to the consensus forecast for a gain of 150,000.)

“I think the Street thinks they’re going to zero subscribers. They are not. “Netflix is going to always be the anchor subscription.”  Pachter stated.

According to Wedbush: “In our view, Netflix’s losses are primarily a result of its deep saturation in the U.S. and Canada, with other options being more attractive to new subscribers once it decided to raise price.”

However, new content rollouts could underscore the platform’s “commitment to reducing churn,” thus increasing subscriber growth and investor confidence.

Patcher said: “In our view, this experiment will be a resounding success if expanded to all Netflix originals, and we believe the company will ultimately move in that direction.”

Overall, Wedbush describes Netflix as an “immensely profitable, slow-growth company.” The firm suggested that it should raise prices in its more mature markets (U.S, Canada) in order to increase profitability to reinvest in newer markets like Latin America and Asia. 

Meanwhile, the online streaming platform has laid off 150 of its employees as its subscriber base and revenue slows down. This is coming less than a month after it disengaged at least 10 full-time staff and contractors in its editorial and marketing divisions.

On Tuesday, Netflix confirmed to Yahoo Finance that it will be laying off about 150 positions of the streamer’s 11,000 workforce in an effort to reduce spending and offset slowing revenue growth.

The sacked workers represent two percent of its workforce, largely in the U.S. The company is also eliminating 70 roles from its animation unit, as well as roles for social media and publishing contractors. 

“As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. So sadly, we are letting around 150 employees go today, mostly US-based,” a Netflix spokesperson said in a statement.

“These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues. We’re working hard to support them through this very difficult transition”, he added.

Investors King reports that Netflix’s unexpected decline in Q1 subscribers led to a stock plummet of 35 per cent and wiped more than $50bn off its market cap.

Since then, the stock has struggled to rebound, down more than 68 per cent year-to-date as investors question the longevity of the Netflix business model amid high inflation and increased competition.

To mitigate the impact of the low revenue, number of subscribers, Netflix will introduce an ad-supported subscription option and cut down on spending.

Coupled with layoffs, Netflix’s upcoming ad-supported offering, in addition to its crackdown on password sharing, should also help alleviate monetary pressures, with “great potential to drive significant revenue,” according to Wedbush.

“On balance, we think ad-supported subscriptions is a good idea, particularly as a disincentive to churn,” the note read.

As competition in the space intensifies, Patcher said it’s important to remember Netflix’s identity within the streaming wars.

Patcher noted that Netflix consumption is something north of 30 hours a month, adding that “quantity is important”.

“Nobody goes into Walmart expecting to buy premium brands and spend a ton of money. They go in for quantity. That’s what Netflix is. They’re the Walmart of streaming video, and they’ve got everything,” he said.


Ahmad, Lametek Get Presidential Nod as Deputy Governors, CBN for Second Term



Mrs. Aishah Ndanusa Ahmad

President Muhammadu Buhari has reappointed Mrs. Aishah Ndanusa Ahmad, Deputy Governor, Financial System Stability, Central Bank of Nigeria and Edward Lametek Adamu, Deputy Governor, Corporate Services, Central Bank of Nigeria to serve second terms at the apex bank.

In a letter read by Senate President Ahmad Lawan on the floor of the Senate during Tuesday’s plenary, Buhari requested that the Senate screen and confirm the nominees to serve for a second and final term as deputy governors at the apex bank.

Ahmad, a Chartered Financial Analyst (CFA) charter-holder was first nominated deputy governor in October 2017. She was confirmed as the first female DG in charge of the Financial System Stability directorate which is responsible for ensuring a safe and sound financial system in Nigeria, a core mandate of the CBN.

With over 25 years of policy and financial industry experience, she holds an MSc in Finance & Management from Cranfield University UK, an MBA (Finance) from the University of Lagos and a second-class upper bachelor’s degree in Accounting from the University of Abuja. Ahmad has been credited with bringing dynamism and a strong combination of academic qualifications and private-sector experience to her role as deputy governor of FSS.

Adamu, a quantity surveyor by training was nominated to the role of the deputy governor, in February 2018. He was later confirmed as DG in charge of the Corporate Services directorate following a 25-year career culminating in his role as HR Director at the CBN.

He is a graduate of Ahmadu Bello University, Zaria Kaduna and a fellow of the Nigerian Institute of Quantity Surveyors and the Institute of Credit Administration. He began his career with the Unified Public Service in 1983.

Both nominees are expected to be screened for confirmation by the relevant Senate committee.

Continue Reading


FedEx Establishes Direct Presence in Nigeria to Support Customers with International Trade

Customers in Nigeria now have greater access to a wider portfolio of FedEx Express shipping solutions




FedEx Express (FedEx), a subsidiary of FedEx Corp. and the world’s largest express transportation company, has announced that it has established a direct commercial presence in Nigeria, to meet the country’s growing international shipping demands.

With a direct presence in the country, businesses and customers in Nigeria now have greater access to a wider portfolio of FedEx Express shipping solutions, while Red Star Express Plc, our service provider in Nigeria continues to provide the infrastructure for ground operations.

Customers will also have access to a range of FedEx digital tools that makes shipping easier and more efficient through  These services include opening a new account, tracking shipment status, creating shipping air waybills, scheduling courier pickups, and managing billing. Additionally, FedEx will now have dedicated Sales and Customer Technology teams on ground to interact and provide enhanced logistics expertise to help local businesses grow internationally.

Nigeria is the largest and fastest growing economy in Africa, and the African Development Bank projects that the average growth rate for the country’s economy will increase by 3.2% between 2022 through to 2022.

Taarek Hinedi, vice president for FedEx Middle East and Africa operations, said, “Today we are closer to our customers than ever before. This strategic step makes it easier for local businesses to ship with us as they look to tap more import and export opportunities and grow their customers around the world.”

“Nigeria is on the right path for further growth and FedEx is committed to supporting this growth and connecting Nigeria to some of the biggest trading partners located in Asia and Europe. The FedEx network is crucial to provide businesses with greater connectivity between Africa and Europe as well as within the Asia Pacific, Middle East and Africa (AMEA) region,” said Hinedi.

“As Nigeria continues with its 2021 to 2025 National Development Plan to increase the share of its exports to Africa up to 35% from a base figure of 20%, businesses will require a range of international services and solutions to help boost the economy.”

FedEx has been facilitating trade in Nigeria since 1994, offering its international solutions through Red Star Express Plc. With this latest initiative, FedEx will continue to leverage the capabilities and infrastructure of the service provider, Red Star Express Plc, that will continue to provide pick-ups, deliveries, customs clearance services, and retail locations across the country.

FedEx remains committed to supporting the Nigerian Government’s Economic Recovery and Growth Plan (ERGP), to drive structural reforms to diversify its economy and reduce dependency on oil. The FedEx direct presence in the country will help connect Nigerian business owners, exporters, importers, and consumers to more than 220 countries and territories worldwide, covering more than 99% of the world’s gross domestic product.

Continue Reading

Merger and Acquisition

Otedola Moves to Sell Part of Geregu Power Plc to FEDA

Afreximbank to acquire part of Geregu Power plant



Geregu Power

Billionaire Femi Otedola-owned energy company, Geregu Power Plc is in talks with the Fund for Export Development in Africa (FEDA) for the acquisition of part of the energy company.

The company stated in a statement signed by Akinleye Olagbende, Company Secretary and made available on the Nigerian Exchange Limited (NGX).

Geregu Power hereby notifies “Nigerian Exchange Limited (the Exchange) and the investing public of its discussions with the Fund for Export Development in Africa (FEDA) for the acquisition of a portion of Geregu Power Plc shares. FEDA is the impact development arm of the Africa Export and Import Bank (Afreximbank),” the company stated.

According to the energy firm, talks are presently ongoing and “where these talks progress to a more advanced stage, the company will notify the Exchange and the investing public in line with the rules of the Exchange.”

In October, Geregu Power listed 2.5 billion shares at N100 a unit on the Main Board of the NGX. This puts the company’s market value at N250 billion and also in a better position it to raise capital to bid for Geregu II as it is presently doing.

Speaking on the listing, the Chairman, Board of Directors, Mr. Femi Otedola, CON, said “the listing of the company was the actualization of a vision to bring world-class standards in governance sustainability, and business processes to the Company and the Nigerian electricity sector.”

He added that “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders”.

Otedola is the largest shareholder in FirstBank and also holds a 99% stake in Amperion Power, the owner of the Geregu Power Plant.

Continue Reading