Netflix, Ctrip, Priceline have High Potential Q4 Results

Piper Jaffray released a research report earlier today which provides analysts' predictions of the three companies in the digital media and online travel segments with the highest potential for strong Q4 results and upward revisions in Q1. The chosen companies are Netflix NFLX, Ctrip CTRP, and Priceline (PCLN). According to analysts, Netflix will enjoy increased market power due to the decline of retail rental stores and increased popularity of online streaming. Slight revenue upside for Netflix is expected given recent web traffic data. Analysts expect a deceleration in y/y revenue growth for Ctrip given weaker Q4 air traffic data in China. However, reported Q4 revenue growth around 35-40% y/y is expected to boost Ctrip shares. Priceline benefits from exposure to international offline to online transition, and analysts predict Q4 outperformance. The company's Q1 outlook is expected to be in-line with current estimates. As given by the report, risks for companies in the digital media and online travel segments include low consumer spending, slow ad spending recovery, and resistance to adoption of new technology. Netflix, Ctrip, and Priceline are trading at $182.40, $44.02, and $421.60, respectively.