Not financial advice! Visit our website for more detailed investing ideas: https://www.overlookedalpha.com
Netflix reported earnings a few days ago and the stock hasn’t reacted too much.Net income came in at 1.3 billion and free cash flow was 2.1 billion which means the stock is valued at around 35 times earnings or 53 times free cash flow based on twelve month figures.
Total number of paid subscribers increased by 1.75 million in the first quarter and revenue grew 3.7% to 8.2 billion.
This is encouraging for Netflix investors because there were signs that subs were starting to fall.
But this is hardly scintillating growth and it’s simply not enough when the stock trades at such a high multiple.
The streaming business is intensely competitive. Netflix is responding by introducing ads and making it harder to share passwords.
But it’s also cutting investment in new content. One way to do this is to produce cheaper, reality style shows and fewer expensive blockbusters.
None of these decisions are going to be good for the Netflix brand and its stable of content.
Disney, HBO and many others are chasing from behind. But without stronger growth, Netflix stock looks like a sell.
But these are my personal opinions not financial advice. If you’re interested in more detailed investing ideas check out our website at overlookedalpha.com
#shorts #stocks #investing #netflicstock
Netflix reported earnings a few days ago and the stock hasn’t reacted too much.Net income came in at 1.3 billion and free cash flow was 2.1 billion which means the stock is valued at around 35 times earnings or 53 times free cash flow based on twelve month figures.
Total number of paid subscribers increased by 1.75 million in the first quarter and revenue grew 3.7% to 8.2 billion.
This is encouraging for Netflix investors because there were signs that subs were starting to fall.
But this is hardly scintillating growth and it’s simply not enough when the stock trades at such a high multiple.
The streaming business is intensely competitive. Netflix is responding by introducing ads and making it harder to share passwords.
But it’s also cutting investment in new content. One way to do this is to produce cheaper, reality style shows and fewer expensive blockbusters.
None of these decisions are going to be good for the Netflix brand and its stable of content.
Disney, HBO and many others are chasing from behind. But without stronger growth, Netflix stock looks like a sell.
But these are my personal opinions not financial advice. If you’re interested in more detailed investing ideas check out our website at overlookedalpha.com
#shorts #stocks #investing #netflicstock
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NewsTranscript
00:00 Netflix reported earnings a few days ago and the stock hasn't reacted too much.
00:04 Net income came in at $1.3 billion and free cash flow was $2.1 billion which means the
00:09 stock is valued at around 35 times earnings or 53 times free cash flow. Total number of
00:14 paid subscribers increased by 1.75 million in the first quarter and revenue grew 3.7% to $8.2 billion.
00:21 This is encouraging for Netflix investors because there were signs before that subs were starting to
00:26 fall but this is hardly scintillating growth and it's simply not enough when the stock trades at
00:31 such a high multiple. The streaming business is intensely competitive. Netflix is responding by
00:36 introducing ads and making it harder to share passwords but it's also cutting investment in
00:40 new content. One way to do this is to produce cheaper reality star shows and fewer expensive
00:46 blockbusters. None of these decisions are going to be good for the Netflix brand and its stable
00:51 of content. Disney, HBO and many others are chasing from behind but without stronger growth,
00:56 Netflix stock looks like a sell.