Netflix Inc (NASDAQ: NFLX) shares dipped on Monday — even as the markets ended the day in the green — after a report indicated that the subscription video on demand service may be losing subscribers due to the controversy over “Cuties,” Fox Business reported.
What Happened: The research firm YipitData, which authored the report, said the number of customers who didn’t renew their subscription began to increase after the film was released on the platform earlier this month, Fox Business noted.
The daily subscriber churn at Netflix, as of Saturday, hit a multi-year high, with eight times more customers not renewing their subscriptions than in August.
A petition demanding that the Maïmouna Doucouré-directed film be removed from Netflix, and the streaming platform be charged with “Distribution of Inappropriate Child Material,” gained 626,689 signatures as of press time.
Why It Matters: YipitData believes that the stir against the film would intensify in the coming days, as per Fox Business.
The outcry arose due to a promotional poster and the alleged “sexualized behavior” of the movie’s child actors according to the New Yorker.
The backlash has also spread to the political circles with Senator Ted Cruz (R-Texas) and other members of Congress calling for subscribers to “#CancelNetflix.” Cruz also called for a criminal investigation of Netflix in relation to the movie.
Representative Tulsi Gabbard (D-Hawaii) called Cuties “child porn” on Twitter, claiming the film would “will certainly whet the appetite of pedophiles [and] help fuel the child sex trafficking trade.”
Netflix says they have updated pictures and description of the movie. “We’re deeply sorry for the inappropriate artwork that we used for Mignonnes/Cuties,” a company spokesperson told Fox Business.
Price Action: Netflix shares closed 1.2% lower at $476.26 on Monday. The shares gained nearly 1.2% in the after-hours session.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tropical Storm Beta expected to hit Texas coast at hurricane strength by Monday
With parts of the Alabama coast and Florida Panhandle still reeling from Hurricane Sally, a hurricane watch was in effect early Saturday for a 300-mile stretch of Texas coast as Tropical Storm Beta gathered strength in the Gulf of Mexico.
At least two deaths were blamed on Sally, which roared ashore on Wednesday morning, and hundreds of thousands of people were still without power early Saturday.
Beta, which is expected to reach hurricane strength by Sunday, is among three active storms in an exceptionally busy Atlantic hurricane season.
At 10 a.m. CDT, Beta was about 305 miles east-southeast of Corpus Christi, Texas, moving northwest at 3 mph with sustained winds of 60 mph.
Both the city of Galveston and Galveston County on Saturday issued voluntary evacuation orders ahead of Tropical Storm Beta.
Mayor Pro Tem Craig Brown said in a statement that high tides and up to 10 inches of expected rainfall would leave roads impassable, especially along the city’s west end and low-lying areas.
County Judge Mark Henry said during a Saturday news conference that his concern is also based on rising waters creating a storm surge and that a mandatory evacuation is not expected.
“If you can survive in your home for three or four days without power and electricity, which we’re not even sure that’s going to happen, you’re OK,” Henry said. “If it’s uncomfortable or you need life support equipment, maybe go somewhere else.”
Storms Alpha and Beta form: Hurricane season 2020 has been so busy, we have to use Greek letters
As the tropical storm pushed toward the Texas and Louisiana coast, the National Hurricane center issued a Hurricane Watch along a 285-mile stretch of coast from Port Aransas to High Island. The center said hurricane conditions were possible in the watch area by Monday night.
A tropical storm warning was in effect from Port Aransas, Texas, to Intracoastal City, Louisiana, and a storm surge watch was in effect from Port Mansfield, Texas to Cameron, Louisiana.
Wind, heavy rainfall and life-threatening surf and rip current conditions were also expected with the storm.
As storms rapidly formed in the Atlantic this season, forecasters quickly ran out of their list of names and had to begin using the Greek alphabet to designate storms for only the second time since the 1950s.
Alpha was a post-tropical cyclone Friday night after bringing rain to Portugal. Tropical Storm Wilfred remained at sea but was 830 miles west-southwest of the Cabo Verde Islands with maximum sustained winds at 40 mph.
Meanwhile, Hurricane Teddy remained a powerful hurricane into Saturday, with maximum sustained winds at 130 mph. Teddy was centered 695 miles southeast of Bermuda less than a week after Hurricane Paulette made landfall in the wealthy British territory.
Large swells from Teddy were forecast to impact the Lesser Antilles, the Greater Antilles and the Bahamas, and later Saturday were to spread to Bermuda and the U.S. East Coast.More: Florida deputy uses resident’s boat to save about 120 people trapped in Sally floodwaters
Areas along the Florida panhandle were still coping with the effects of Hurricane Sally. In Escambia county, where Pensacola is located, county administrator Janice Gilley said Friday that power outages were causing accidents on the roadways as drivers ignored four-way stop rules. “Please, please, please, do not be on the roads if it’s not an emergency, and you don’t have to,” she said.
Escambia County Sheriff David Morgan said people should only leave their homes to get fuel or food or if it is an emergency.
“If you’re out looking at damage and devastation, you are part of our problem right now,” Morgan said. “Stay at home unless you’re out getting food or gas for your generators and your vehicles. Stay at home. Do not leave unless it is an emergency situation, and in that case, call us. All of our ambulances and those sorts of things are up and running.”
Contributing: Jim Little, Pensacola News Journal; Associated Press
This article originally appeared on USA TODAY: Tropical Storm Beta path: Texas, hurricane strength; Sally damage
International Paper Company’s (NYSE:IP) Intrinsic Value Is Potentially 43% Above Its Share Price
In this article we are going to estimate the intrinsic value of International Paper Company (NYSE:IP) by taking the forecast future cash flows of the company and discounting them back to today’s value. We will use the Discounted Cash Flow (DCF) model on this occasion. It may sound complicated, but actually it is quite simple!
We generally believe that a company’s value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.
See our latest analysis for International Paper
Step by step through the calculation
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company’s cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren’t available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today’s dollars:
10-year free cash flow (FCF) forecast
|Levered FCF ($, Millions)||US$1.54b||US$1.75b||US$1.67b||US$1.64b||US$1.62b||US$1.62b||US$1.64b||US$1.65b||US$1.68b||US$1.71b|
|Growth Rate Estimate Source||Analyst x7||Analyst x2||Est @ -4.07%||Est @ -2.18%||Est @ -0.86%||Est @ 0.06%||Est @ 0.71%||Est @ 1.16%||Est @ 1.48%||Est @ 1.7%|
|Present Value ($, Millions) Discounted @ 8.2%||US$1.4k||US$1.5k||US$1.3k||US$1.2k||US$1.1k||US$1.0k||US$940||US$878||US$823||US$774|
(“Est” = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$11b
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country’s GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.2%) to estimate future growth. In the same way as with the 10-year ‘growth’ period, we discount future cash flows to today’s value, using a cost of equity of 8.2%.
Terminal Value (TV)= FCF2030 × (1 + g) ÷ (r – g) = US$1.7b× (1 + 2.2%) ÷ (8.2%– 2.2%) = US$29b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$29b÷ ( 1 + 8.2%)10= US$13b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$24b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$42.9, the company appears a touch undervalued at a 30% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope – move a few degrees and end up in a different galaxy. Do keep this in mind.
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don’t have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company’s future capital requirements, so it does not give a full picture of a company’s potential performance. Given that we are looking at International Paper as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we’ve used 8.2%, which is based on a levered beta of 1.002. Beta is a measure of a stock’s volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company’s cost of equity or the risk free rate can significantly impact the valuation. Can we work out why the company is trading at a discount to intrinsic value? For International Paper, we’ve compiled three relevant elements you should further examine:
- Risks: Take risks, for example – International Paper has 4 warning signs we think you should be aware of.
- Future Earnings: How does IP’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email email@example.com.
Doctors aren’t pushing an ‘untested’ seasonal flu vaccine for the coronavirus
The claim: Doctors are pushing an ‘untested’ flu vaccine with a ‘very low strain’ of the coronavirus in it
As flu season nears, doctors around the country are advocating that people receive the seasonal influenza vaccine, which health experts say is more important than usual amid the COVID-19 pandemic. They say having more defenses against the seasonal flu will help put less strain on the medical system, which will then help the country have more capacity to combat the novel coronavirus.
But some claims on social media have advised against taking the vaccine by incorrectly conflating the flu shot with a potential vaccine for the coronavirus, the latter of which is still in development.
Facebook user Madyson Marquette on Sept. 15 posted what she said was an exchange with her son’s pediatrician regarding the flu shot. During the exchange, she said, her son’s doctor told her the strain of the flu for the shot was “Covid, but a very low strain of it.” The implication is that “Covid” is referring to the coronavirus, which causes COVID-19, the disease that has killed nearly 200,000 Americans.
Marquette’s post says she told the doctor she wouldn’t give her child an “untested Covid flu shot.” She alleges the doctor said they were pushing it because the Centers for Disease Control and Prevention is asking them to.
“Wake UP and for all (that) is Holy DO NOT GIVE your children a Covid vaccine!!” her post said.
Marquette’s post had more than 7,000 shares as of Friday afternoon. She did not return a USA TODAY request for additional information.
More: How the CDC failed public health officials fighting the coronavirus
The coronavirus is not a strain of the flu, and it’s not in the flu shot
Both the seasonal flu and the novel coronavirus, SARS-CoV-2, are viruses that can cause fever, cough, shortness of breath and other symptoms.
But SARS-CoV-2 is not a strain of the flu. Instead, it’s part of a family of coronaviruses that includes some that give people upper respiratory illnesses. Experts say the novel coronavirus is also much deadlier than the seasonal flu.
This year’s flu shot neither contains the coronavirus, nor elements meant to protect people from it.
More: Data, data and more data will make a coronavirus vaccine safe, USA TODAY’s vaccine panel says
Each year, researchers update the flu shot in order to protect those who receive it from strains of the influenza virus. The shot protects against either three strains (trivalent) or four strains (quadrivalent). Changes for the 2020-2021 flu vaccine include modified components to combat some updated flu strains, but there are no additions to the shot listed to combat coronaviruses, according to the CDC’s website.
A Reuters fact-check that reviewed the contents of flu vaccines approved by the U.S. Food and Drug Administration found none contained SARS-CoV-2 or other coronaviruses.
The FDA tests and approves all influenza vaccines, according to the CDC, meaning no child or adult would be offered an “untested” flu shot by a doctor.
The flu shot, explained: It’s crucial to get a flu shot this year amid the coronavirus pandemic, doctors say
Also, neither the CDC nor any physician is pushing a coronavirus vaccine because there isn’t one to push. The vaccine remains under development, and it’s unknown for sure when one will become widely available in the United States.
According to the New York Times’ Coronavirus Vaccine Tracker, 40 vaccines are in clinical trials on humans, and at least 92 are being tested on animals. Some vaccines in China and Russia have been approved for early or limited use, but none has reached the point of being administered to the American public.
Medical professionals have also debunked the idea that those who take the flu vaccine would be more likely to test positive for the coronavirus or become sick with it. According to the CDC, there’s no evidence that either would occur. The CDC also says the flu vaccine will not protect against catching the coronavirus.
Our ruling: False
While the exact wording of the verbal exchange between the author of the Facebook post and her son’s pediatrician is unknown, her post contains multiple false claims.
COVID-19 is not a strain of the flu — it’s a coronavirus — and would not be present in a seasonal flu vaccine. The current flu shot does not contain the novel coronavirus, nor is there evidence that receiving the shot would increase or decrease a person’s chances of catching COVID-19. Each flu shot is scrutinized and approved by the FDA, so it’s not “untested.” And, no coronavirus vaccine has made it beyond the clinical trial stage in the U.S., and is thus not available to the public at this point.
For those reasons, we rate this post as FALSE.
Our fact-check sources:
Centers for Disease Control and Prevention, July 12, 2018, When is flu season
USA Today, Aug. 17, A flu shot doesn’t always protect you, but amid the COVID-19 pandemic, it’s more important than ever
Johns Hopkins University School of Medicine, Sept. 18, Coronavirus resource center
Centers for Disease Control and Prevention, Aug. 31, What is the difference between influenza (flu) and COVID-19?
Centers for Disease Control and Prevention, Aug. 31, Influenza (flu): What you need to know for 2020-21
Reuters, Sept. 18, Fact-check: The flu vaccine is not an untested COVID-19
Centers for Disease Control and Prevention, Sept. 10, Influenza (flu): How flu vaccines are made
USA Today, Sept. 17, Data, data and more data will make a coronavirus vaccine safe, USA TODAY’s vaccine panel says
The New York Times, Sept. 18, Coronavirus vaccine tracker
USA Today, April 1, Fact check: Getting the flu shot doesn’t make you more (or less) likely to get the coronavirus
Ian Richardson covers the Iowa Statehouse for the Des Moines Register. Reach him at firstname.lastname@example.org, or on Twitter at @DMRIanR.
Thank you for supporting our journalism. You can subscribe to our print edition, ad-free app or electronic newspaper replica here.
Our fact check work is supported in part by a grant from Facebook.
This article originally appeared on USA TODAY: Fact check: Flu shot is not an ‘untested’ vaccine to fight COVID-19
- Reward doubled for tips on suspects who targeted Camden cops
- Ty Lawson reportedly banned for life from CBA
- Tropical Storm Beta expected to hit Texas coast at hurricane strength by Monday
- International Paper Company’s (NYSE:IP) Intrinsic Value Is Potentially 43% Above Its Share Price
- Epic says Apple ‘cherry picked’ info about Fortnite’s popularity in new filing
- Epic rejects Apple claims that ‘Fortnite’ on iOS was dying
- Biden spent years warning of voter fraud — now call a myth
- COVID-19 eviction ban nearly makes Staten Islander homeless
- Pogacar crushes Roglic to take grip on Tour de France title
- Doctors aren’t pushing an ‘untested’ seasonal flu vaccine for the coronavirus
Sports News2 weeks ago
Fantasy Football Auction Draft strategy: Tips, advice for spending your 2020 player budget wisely
Sports News2 weeks ago
NBA playoff bracket 2020: Updated standings, seeds & results from each round
Sports News2 weeks ago
NBA 2K21 Cover Star Damian Lillard Reveals His Issues With the Game
General Other7 days ago
All This Intense Interest in Marathon Oil Stock Is Just Another Fad
Sports News1 week ago
NFL Analyst Takes a Cheeky Dig on Browns Stars Odell Beckham Jr. and Baker Mayfield
General Other5 days ago
6 Bond Replacements To Consider For Your Portfolio
Tech24 hours ago
Destiny 2 Xur location and items, Sept. 18-22
General Other1 week ago
More Republican voters acknowledge systematic racism