Stock price when the opinion was issued
Clearly winning the streaming wars, being pulled upward by increasing number of global subscribers. That's driving pricing power. New ad-supported tier, password-sharing crackdown. Investing in original content. Live sports are generating revenue. No dividend.
Increasing cashflow. Sees 23% earnings growth. Shares are down ~15%.
He and Lang suggests consumer-oriented stocks with a subscription base that work even in a slowdown: Netflix, Roku and Spotify. Last January, NFLX reported a super quarter, then shares gapped up, but rolled over mid-February with the market. Lang says that was a reset. Shares have been rebounding ever since, now 9% this year. NFLX has resistance at $1,000, but if it breaks that, Lang thinks it can reach $1,250. A momentum indicator--MACD--recently made a bullish crossover. Meanwhile, the Chaikin Money Flow (CMF) is slightly bullish; big buyers are still buying. RSI is starting to bounce after hitting oversold earlier this month, now around 50, so there's a ways to go before being overbought.
It recorded a great quarter last week and last January, but hasn't been immune from this ugly market. But it has made up its recent losses and it up 10.84% this year. They reported a solid revenue beat and monster earnings beat. Also, they didn't sound nervous about the future or the economy. but gave strong guidance for this quarter and reiterated their full-year.
Impressed by last week's quarterly results. Cracking down on password sharing is generating more revenue. Innovating by launching ad-supported versions. Geographic expansion. Aggressive investment in content. Has become a big free cashflow story.
Officially classified as a consumer discretionary stock, but he considers it more akin to a utility. A relatively inexpensive indulgence for the value it offers. Difficult macro headwinds would have minimal impact.
There may be more value at Disney, but NFLX is a juggernaut with unstoppable momentum. It will go to $1,000. There was 15% quarterly revenue growth in Q3. Every piston is humming: Squid Games 2, live NFL streaming, women's soccer. Considering ad revenue, 2026 will be even better than 2025.