Netflix Inc. (NFLX)

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.

He agrees, thinks Netflix could hit $500. In recent years, he has bought on weakness and sold on strength, based on the company's direction of revenue growth, now 16% (3 years) and 8% (2 years) and 3% (1 year). We could easily see that accelerate. He would buy it back.

It is an over-the-top streaming company. He likes the space and owns Disney along with its successes and some setbacks.

A year ago, it was losing subscribers and a lot of dreams had come out of the stock. They turned it around, nice rebound, but got ahead of itself in light of earnings last night. He sold because growth was all priced in.

Announced a disappointing quarter and forecast today. Shares may take a breather, but Netflix doesn't decline for long.

Just hit a 52-week high. Are working on their password sharing crackdown while the ad tier is starting to work well. They are starting to generate cash flow again. Likes this for being a pure streamer as opposed to Disney, which he may re-buy down the road.

It's all about the content war, and they're winning it. They have great content.

Down today because all tech is down. Big announcement today about Warner's and HBO. NFLX is king, no one else can compete on economies of scale. The one he has the most certainty on growth going forward. Not cheap, but attractive based on growth.

A second driver of growth has been the new ad tier. After six months, this new tier has attracted nearly 5 millions subs worldwide and “more than doubled” since early this year. About one in four new sign-ups elected the cheaper ad version of Netflix. It’s still early days, but these figures are moving in the right direction. The street reacted last week with two upgrades, including one price target jumping to $535. That may be optimistic, but the consensus is that Netflix has more room to run. Read 3 Big Tech Stocks Making a Comeback for our full analysis.

The password crackdown is effective. A lot of the quant buying in recent weeks is going to breakouts like Tesla. Their fundamentals are also improving.

Loves this call. The company is monetizing its existing base through password sharing--it's starting to work. The ad-supported tier is starting to grow. It's the leading streamer.

Shares are already up 37% YTD, though 40$ below all-time high. A clear-breakout and likes the momentum. The PE is lower than other streamers, like Disney. Password-crackdown is working. This could hit $500 with this momentum.