Netflix May Find Latin American Growth Hard to Come By
Maybe Netflix Inc. (NASDAQ: NFLX ) CEO Reed Hastings knows something about Latin America that has eluded everyone else.
The executive – who started Netflix because he was mad how poorly he was treated by then-dominant player Blockbuster – surprised Wall Street yesterday by announcing plans to expand his popular video streaming service to 43 countries in Latin America and the Caribbean later this year. Netflix, whose shares have surged almost 65 percent this year, wants to convince investors that it deserves its hefty price-to-earnings ratio of 83.12.
Wall Street analysts are understandably cautious about Netflix’s stock. Their price targets range from $80 to $316, and Netflix currently trades for $289.66. The Latin America strategy will not be enough to address these concerns. While broadband penetration rates in the region are expanding, so are worries that the once red-hot economies in the region are starting to buckle like their counterparts in other parts of the world.
“Latin America continues to grow at a healthy pace led by strong expansion in domestic demand,” according to a May report from the International Monetary Fund, which estimates the region’s GDP expanded at 6% in 2010 and will slow to 4.75%. “But the region is experiencing an excessively stimulative environment that brings along the risk of overheating.”
Shares of the iShares S&P Latin America 40 Index are down 3.29% this year as investors fretted about whether the high commodities prices and strong exports to Asia that sustained the region’s economic growth were sustainable. Many of the area’s high-flying economies are showing signs that they are mortal.
Take Brazil, the largest economy in Latin America. As Bloomberg News recently noted, economists there slashed their estimates for GDP growth for a second straight week from 3.95% to 3.94%. Consumer prices are expected to rise 5.1% next year, down from a previous forecast of 5.15%. The benchmark Bovespa index fell 10% during the first half of 2010 but has pulled back some lately. The MSCI Brazil Index Fund (NYSE: EWZ ) has barely budged this year.
Mexico, whose economy expanded at its fastest rate in a decade in 2010, also is hurting. Its economy grew 2.4% in April, its slowest pace since November 2008, according to Bloomberg. Double-digit inflation and a rise in consumer prices might undermine the gains made in Argentina .
Colombia is the exception, growing at 5.1% during the first quarter versus a year ago. The Wall Street Journal reported that retail sales alone surged 23% in April. In May, the International Monetary Fund approved a $6.2 billion line of credit. “Colombia remains exposed to downside risks, including from severe commodity price fluctuations and other adverse external developments,” said IMF First Deputy Managing Director John Lipsky in a statement .
Largest South American Country By Area - News
Many of the area's high-flying economies are showing signs that they are mortal. Take Brazil, the largest economy in Latin America. As Bloomberg News recently noted, economists there slashed their estimates for GDP growth for a second straight week
Share "Think Twice: New Latin American Jewelry," is the largest comprehensive overview of contemporary Latin American jewelry to come to the US and Bellevue Arts Museum is the only Northwest venue to showcase this extraordinary collection.
A study has put numbers to that state of well-being by quantifying the significant reduction in social inequality in the last few years, an area in which South America's giant has outdone other emerging nations. The study, "Os emergentes dos
(6701) plans to increase sales in Brazil by 30 percent this year, boosted by rising demand as the country prepares to host the World Cup and the Olympics, said the company's top executives in Latin America. “Our new development area will focus in
Some countries in Latin America have developed "women's police stations," which are dedicated to handling cases involving violence against women. These stations, now in 13 countries, have improved reporting and conviction rates.
Argentina's Real Estate Market Getting on Track after Economic ...
Buenos Aires, Argentina: Due to International Real Estate Listings.com , prospects for Argentina real estate for sale have increased as local and foreign investors are getting more information about the available opportunities. The economy of Argentina is steadily improving after the global economic downturn. International Real Estate Listings.com decided to capitalize on this situation and created the website concentrating on Argentina real estate listings in order to promote Argentina real estate to local and international buyers. The main attractions for international real estate operators in Argentina real estate is that neighbor Brazil is going to host 2014 World Cup and 2016 Olympics, which would definitely give an indirect boost to the property market and real estate in Argentina.
Argentine Republic is located in South America and it is the second largest country of this region. By land area it is the eighth largest country in the world and the largest nation of Spanish language speaking people. Argentina has a very well educated population. Argentina is an export-oriented country with agricultural sector being the major contributor to GDP. The industrial sector of Argentina is diversified. Most of the population is considered as upper middle income class.
As the economy is strengthening slowly but steadily, the interest in the real estate in Argentina could not be minimal. After the downturn, the Argentina’s real estate agents had been skeptical about the property situation. However, through the Argentina real estate website that links to www.InternationalRealEstateListings.com , Mr. Taylor White, the leading international real estate professional, had provided a solid platform to display Argentina’s real estate listings and Argentina’s rentals. This had achieved good success in attracting not only the local property stakeholders but also the international real estate investors as well. The salient features of this website were explained by Mr. White as follows:
1) The launch of this website is providing a big platform for the real estate owners, agents, and developers in Argentina to create their accounts in just 30 seconds. The account holders have expressed must satisfaction over the account requirements which do not involve personal details like credit card, etc.
2) The listers thoroughly appreciated the idea of free Basic Listings for six months in which they can upload unlimited number of Argentina’s real estate listings along with photos and videos on the website.
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