Netflix Stock Analysis

Netflix stock price is below 200 now, could it go back to 700? Let's take a look

Netflix is still the leading streaming service in the US. Source: Netflix

Growth 🌱

• Revenue Q/Q (7.16B -> 7.87B) +10% 👎
• Revenue TTM (26.39B -> 30.4B) +15% 👎

• Number of subscribers decreased 200K from previous quarter for the first time in a decade. Next quarter’s number could even be worse. 👎

“our relatively high household penetration — when including the large number of households sharing accounts — combined with competition, is creating revenue growth headwinds” — Netflix

source: Netflix

Profitability 💰

• Gross Margin 46%
• Operating Margin 25%
• Net Margin 20%
• Gross Profit Q/Q (3.29B -> 3.58B) +9% 👎
• Gross Profit TTM (11.59B -> 14.07B) +21%
• Operating Expenses Q/Q (1.34B -> 1.61B) +21%
• Operating Expenses / Gross Profit (1.61B / 3.58B) 45% 👎

Valuation ⚖️

• Market Cap: 80B
• P / S: 3 👍
• P / Gross Profit: 6 👍
• P / Operating Income: 13 👍
• P / E: 16 👍

News 📰

• Rumored to buy Roku. 👍
• Announced it will add an ad-supported, cheaper subscription tier. 👍

Bull Says 📈

• Netflix CEO Reed Hastings is visionary and experienced. He helped Netflix to grow from a DVD rental company to a streaming/entertainment giant. So he will be able to turn Netflix around again.
• Netflix current valuation looks very attractive compared to its peers.

Bear Says 📉

• Streaming industry is too crowded and competitive while the user time is limited.