Netflix Inc. (NFLX)

Still has room to run, given its subscription business.

Stock's done consistently well for really the last couple of years, completely crushing everything in the sector. #1 stock in a sector that's starting to come back. Still one of his top-ranked stocks on RSI for US large-cap stocks. No dividend.

Pretty priced to perfection. He's taken 2/3 of his position off; letting the remaining 1/3 go, as it's had a wonderful run, but putting in stops as it goes. He'd say buy it here around $880, try to get it in the low $800s, and then certainly if you see it down around $750.

They have pricing power. They have 64% earnings growth this year and 46% cash flow growth; only 20% earnings growth for 2025 but he predicts much more.

A record 60 million watched he Mike Tyson fight, live. They have 280 million subscribers. They will stream Christmas Day NFL football with Beyonce performing at halftime. People will tune in--he will. Shares are popping after the Tyson fight, but what is not priced into shares is the continued opportunity for Netflix to participate in live events.

They boast 70 million ad subscribers. They have tackled every single challenge in the past and thrive. They can be profitable and can afford to explore new areas like live sports.

Likes it a lot. Trades directly related to its fundamentals. It just hit highs yesterday. Holds a big position, so his holding, but recommends it as a buy, even partially now then adding if it goes down.

Live sports iS the final frontier for them (the upcoming Mike Tyson fight NFLX will stream). The Tyson fight holds big potential for NFLX. 

Continues to dominate subscription streaming. Fostering a really loyal customer base, almost like COST. Expanding footprint into EMs. Interesting sports deals, which clears the path for more subscribers and advertisers. Tier pricing for cost-conscious consumers. Broken above late 2021 highs. 34x forward PE, but 35x EPS growth rate, so the PEG is only 1x. No dividend.

Advertising, not subscriber growth, will be their next catalyst, and live sports.

Today, they reported their best quarter ever: 15% revenue growth, subscriber growth 14% and they beat. They can invest grow at the same time. Their library is rich. It's expensive, but streaming live sports over the holidays will be a major catalyst. Has a 30% growth rate which justifies the high valuation. 

They report Thursday. He expects their ad tier to perform well, and Squid Game 2 will be released that could attract new subscribers.

Still likes it, beating all other streamers. One of the cheaper mega-cap stocks at just over 1x PEG. Brand-new high today. Getting closer to overbought in terms of technicals. You could try to add at the 50-day MA around $680-90; if you're really lucky, get it at the 200-day MA around $620. Ad revenue is helping on top and bottom lines.

Their last report stated strong interest from advertisers--they can target ads as well as anyone. Also, NFLX dominates viewing, taking 20% of streaming time and 8% overall of TV viewing time for Americans. We continue to pivot more into streaming. NFLX has beaten the top-line for 4 straight quarters. They deserve the benefit of the doubt.

It is a cheap player but you can use an alternative one. If it can increase prices then you can get some operating leverage but customers may just leave  in that case.