Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
| Revenue (TTM) | $49.73B |
| Gross Profit (TTM) | $25.21B |
| EBITDA | $15.96B |
| Operating Margin | 34.60% |
| Return on Equity | 53.50% |
| Return on Assets | 17.10% |
| Revenue/Share (TTM) | $11.86 |
| Book Value | $7.13 |
| Price-to-Book | 9.19 |
| Price-to-Sales (TTM) | 5.24 |
| EV/Revenue | 5.55 |
| EV/EBITDA | 7.57 |
| Quarterly Earnings Growth (YoY) | 47.50% |
| Quarterly Revenue Growth (YoY) | 11.80% |
| Shares Outstanding | $4.11B |
| Float | $4.08B |
| % Insiders | 0.58% |
| % Institutions | 85.02% |
Volatility is currently expanding
Netflix (NFLX) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Netflix is rated buy, trading at a five-year valuation low despite industry-leading customer loyalty and retention rates. Revenue growth is decelerating, margins show minimal improvement, and ad revenue remains a small contributor at ~5% of sales. NFLX's 'default advantage' delivers a powerful moat, but mature markets and limited ARM disclosure cloud forward growth visibility.
Netflix's third-quarter revenue growth cooled to 11.8%. A one-time $2.8 billion termination fee inflated Netflix's first-quarter earnings.
Scale scale scale: That's the plan everyone who's not Netflix has for beating Netflix. That's silly, says Barry Diller, who knows both Hollywood and the internet: You'll never get enough scale to catch Netflix.
Netflix posted record profits, bought back nearly $5 billion of its own stock, and signed deals with Disney and the NFL, yet shares sit just above a 52-week low. Something about that gap deserves a closer look.
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We seek to purchase our target companies at share prices that incorporate a margin of safety. We estimate that the companies in PSH's investment portfolio will have average annual EPS growth of about 20% over the next three to five years. Our companies also have higher profit margins, better returns on capital, more favorable competitive positioning, and, in our view, more capable management teams than the average company in the S&P 500.
Netflix announced on Tuesday that it's rolling out a new “AI Discover” tab where users will be able to experiment with new ways to find their next watch. The first experimental feature launching under the tab will allow users to get recommendations based on what they're currently in the mood for.
Netflix stock has been cut by more than half since peaking 17 months ago. Slowing revenue growth and uninspiring guidance have weighed on market interest.
Media companies built around traditional television face a difficult transition. As more viewers drop cable, staying profitable increasingly depends on reaching audiences through streaming.
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