Netflix Inc. (NFLX)

Fell over last week because announced end to reporting new subscribers, which added uncertainty. His 12-month price target is $633, still decent runway. King of streaming and content. Talking more about gaming. Buy in thirds here around $554, $525, and $500.

Last Friday, shares sank 9% after they reported. Their Q1 looked good to him, though, with a huge subscriber beat (adding 9.33 million paid users) and revenue jumped 15% YOY. $2.14 billion cash flow was impressive, and the company offered great guidance for the next quarter. That said, the full-year revenue growth forecast seemed lacking, slightly below expectations, and management didn't raise its full-year free cash flow forecast. This suggests things will be worse in the second half of 2024. Also, they're getting hit by currency fluctuations, like the collapse of Argentina's peso. But starting next year, Netflix won't supply numbers about membership and average revenue per member, which really spooked the market and triggered the sell-off. He agrees that they revenues mean more now with the company, but it was a boneheaded move to hide this data. Overall, he's more bullish than bearish about Netflix. Memberships are up and their ad business is growing.

Good company, but is it a good stock? Moved sharply higher on the back of success. Declared winner of the streaming wars. Watch profitability and margins in the NA markets, as that's where it makes money. Priced aggressively. On valuation, he'd need 20-30% drop before being interested.

Expectations are so high and he fears they can't deliver. Then again, they keep cutting back content. This stock always bounces when it misses, so he will buy more.

It reports tomorrow and he's confident, though shares are running up to this report. Content spend is down and margins are expanding. They added paid sharing and the ad tier. Watch paid sharing.

Price target was raised to $700 today. It's the leading streamer in the world, are profitable and they can grow earnings as they want. They've raised monthly fees in recent years, but still attractive to competitors. He may buy more in coming days.

Streaming is the new normal. Clear leader, the proof is in their huge and growing subscriber count. Competitive landscape. Strong pricing power and best-in-class customer retention via aggressive investment in original content. Tailwind of digital advertising. Should be rapid free cashflow growth. Consensus is compounded earnings of 28% over next 3 years. At 34x, discount valuation of 20% compared to its own history. No dividend.

Wish he owned more shares. It's the winning streaming service and has pricing power. Analysts keep raising the price target, so expect the valuation to get more stretched, but he's happy to hold it.

He wished he owned more. The stock keeps getting cheaper, PE wise. It's clearly the leading streamer and the only one not distracted by other businesses it runs (it has none). He won't add to it, because it's had such a move, but happy to hold.

It continues to innovate among the streamers. Peers like Disney and Paramount keep trying to catch up. Netflix will continued to take market share.

They're the winner in streaming: profitable, have pricing power, adding content and the others are busy trying to catch up. He added on a pullback a few months ago but shares are not cheap now.

An interesting call and he wouldn't be surprised if YouTube became a leader. The only pull in live TV are live sports and business. The move into live sports, like WWE, is positive for Netflix; profits and not more subscribers has been their focus lately, while their content remains strong.

Likes it, but shares just had a very big run, so wait. The markets will give us pullbacks.

It reported after the bell yesterday. It reported a monster beat in paid subscribers and revenue beat, sales up 12.5% YOY, and the second straight quarter of accelerating revenue growth. Netflix is mature and the operating margin was strong, but missed earnings because of a one-time tax hit that nobody cared about. Guidance was mixed: sales was light and operating income much better. The 13.1 million paid net subs additions was due to the password crackdown and offering an ad-supported tier (with target ads). This remains an exciting story. The company expects double-digit growth. Despite that, some analysts have downgraded the stock, noting that it's too early to count on the ad-supported tier to deliver meaningful revenues. However, he maintains that Americans may take Netflix for granted, but there's still a lot of room to grow internationally. Plus, the ad tire has been successful, which suggests that there is room to grow in the U.S. The company continues to prove its profitability and cash flow. Also, one of those analysts has always called Netflix wrong. And they have content from around the globe, another plus. It seems pricey at 32x PE, but it's worth it.

They continue to execute by delivering new content. They leverage foreign content with amazing dubbing to present to North American audiences. Their subscription rates continue to go up. It's clearly the #1 streamer. But they spend a lot on content, and the PE of 40x is too high for him. Fears of Disney+ overtaking them never happened.