Netflix Inc. (NFLX)

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.

Now a lot more competition in the space. Higher interest rates were a headwind for growth stocks. Everyone's now focused on making streaming profitable, not just pushing content or increasing subscribers.

He just sold it to fund buying other stocks. He bought it last year opportunistically.

Just reported a superb quarter and have good ad-driven stuff coming. High quality.

They just reported a good quarter, but can they sustain that? He might buy it if shares slide.

He targets $463, so a decent runway ahead. Will raise rates. They're talking to Trade Desk and Comcast. NFLX has 238 million subs in 190 countries, but big growth is coming outside North America. Password crackdown paid off, because subscriptions have risen (6 million increase). They added a videogame company which helped. Would still buy it.

Stock soared on last week's report: strong in-lines sales and profit margin meant an EPS beat, and raised their full-year operating margin guidance and strong 2024 forecast. Also are generating crazy cash flow, and rising global subscriber growth, beating expectations (the third straight quarter of growth), helped by password crackdowns. Will raise rates in the US, UK and other territories. Despite the rally, he still recommends it because it's still below July's high and trades at 25x PE 2024.