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Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

Sectors that generally survive market volatility relatively unscathed do so by cutting costs and maintaining strong balance sheets. Also, with Fed rate cuts starting with a 50 basis point cut already announced from the September m

Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) seems to have found the latest apple of its eye. The trillion-dollar conglomerate has been rapidly accumulating shares of SiriusXM Holdings (NASDAQ: SIRI), the satellite radio company that's considered a monopoly by

Netflix (NASDAQ: NFLX) deserves the most credit for spearheading streaming video entertainment, bringing it to the global stage, and totally disrupting the traditional cable TV industry. The company's monster success has resulted in some seriously happy shareholders. The stock ha

Disney (NYSE:DIS) is expected to publish its Q4 FY’24 results around November 14. We expect revenues for the quarter to come in at $22.5 billion, slightly ahead of consensus estimates, marking an increase of almost 6% compared to the last year. We expect earnings to stand a

Reaching a trillion-dollar valuation is a milestone that only a small cohort of companies have ever achieved. Right now, there are seven public companies with a market cap in excess of $1 trillion. Those companies are:

Alphabet (GOOGL) is set to report its slowest revenue growth in four quarters on Tuesday, as its core Google Search (GOOG) and YouTube ad businesses face growing competition. Market analysts project Alphabet’s third-quarter revenue to rise 12.6%, a dip from 13.6% in the pre

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Meta Platforms Inc (Symbol: META), where a total volume of 129,145 contracts has been traded thus far today, a contract volume which is representative of approxi

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

Roku ROKU is slated to report its third-quarter 2024 results on Oct. 30.For the third quarter of 2024, ROKU expects total net revenues of $1.01 billion, total gross profit of roughly $440 million and adjusted EBITDA of $45 million

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings oft

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings oft

The tech rally has been helping the broader market this year. Although markets have been volatile over the past couple of weeks, the tech-heavy Nasdaq has been making a steady climb. On Oct. 25, the Nasdaq hit an all-time high, le

In the tech sector, the general sentiment for 2023 and 2024 has been that if it's not involved in artificial intelligence (AI), it gets ignored. I'm just as guilty of this as others, which has caused me to miss one of 2024's best-performing stocks: Netflix (NASDAQ: NFLX). Netflix

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum

Just because a stock is beating the market doesn't mean it's no longer worth investing in. As long as a company has a solid business and excellent growth prospects, investors can count on it to deliver solid returns over the long run. So, despite many companies performing exceedi

There's a public face to Amazon (NASDAQ: AMZN), which is very important. But when you dig into the story just a little bit, you see that Amazon's public face is only a facade. The real business is about selling technology services. Here's a look at the one important fact you can'

Audio streaming service Spotify Technology (SPOT) has seen its share price double year-to-date and more than triple over the past five years as it continues to rack up new subscribers. Spotify’s business looks like it will continue to grow, but the rally has made the share price expensive and given the stock little room for error. As such, I am neutral on SPOT stock due to its lofty valuation. Still, I acknowledge that it has a good business model and other investors might want to consider it. Spotify’s Subscriber Additions Despite my neutral position, Spotify’s growth in monthly active users and paid subscribers is encouraging for long-term investors who have a five to 10 year time horizon. Growth has been a key point for bulls, as the company reached 246 million premium subscribers in the second quarter. That’s a 12% year-over-year increase. The company also has many monthly active users that it can still convert into paid subscribers. Spotify closed the quarter with 626 million monthly active users, which represents a 14% year-over-year increase. Spotify is also testing out artificial intelligence (AI) playlists that allow users to create lists of songs by typing in their own prompts. It’s currently in Beta testing and is only available in the United Kingdom and Australia. Incorporating AI can keep users engaged in the app, a development that could lead to higher retention rates and more people converting from free users to paid subscribers. Spotify isn’t just music. It’s also becoming a hub for podcasts and audiobooks. The company features more than 250,000 podcasts. Authors are also turning to the platform to sell their audiobooks. The addition of Countdown Pages for audiobooks will make it easier for listeners to buy new audiobooks when they come out.  Spotify’s Growth is Likely to Accelerate While I remain neutral on SPOT stock, I admit that the music streaming giant’s most recent guidance offered more fuel for bulls. Spotify’s Q3 2024 outlook implies that the company is headed towards 639 million monthly active users and 251 million premium subscribers. Those are quarter-on-quarter growth rates of 2%. Looking at Q3 2023 results, monthly active users are projected to jump by 11.3% year-over-year while subscribers are expected to rise by 11.1% year-over-year. Total revenue is forecast to have reached €4 billion in this year’s third quarter, representing a 19.2% year-over-year growth rate. That’s a similar improvement to the firm’s 19.8% year-over-year revenue growth in the second quarter. Profits almost tripled year-over-year as well, which offers more optimism for patient investors. Spotify’s net income has outpaced revenue growth for several quarters. More growth on the topline should lead to accelerated net income growth. It may not be much longer before Spotify reports net profit margins above 10%. The audio streamer closed out the second quarter with a 7.2% net profit margin. SPOT Stock’s Valuation is Concerning The main weakness with Spotify stock is its lofty price-to-earnings (P/E) ratio. It’s the one thing that makes me neutral instead of bullish on this security. The stock sports a 154 P/E ratio, which is at nosebleed levels. Spotify generated $274 million in net income in the second quarter of 2024, which includes a $4 million tax benefit. Multiplying this figure by four results in roughly $1.1 billion compared to a $76 billion market cap. The valuation is very excessive if you compare Spotify with fellow streaming giant Netflix (NFLX). Netflix trades at a 43 P/E ratio. While Netflix has lower revenue and net income growth rates than Spotify, the video streamer is still posting respectable growth rates. Netflix also has higher profit margins that exceeded 24% in the most recent quarter. A good company can be a bad stock if the valuation gets too high. While Spotify offers a lot of promise, it’s best to wait for a correction before accumulating shares given the lofty valuation. A lower stock price will minimize the valuation concerns and present a more attractive entry point for investors. Is Spotify Stock a Buy? Spotify is currently rated as a Moderate Buy with a projected 5% upside from current levels. The stock has received 23 Buy ratings, six Hold ratings, and one Sell rating. The highest price target of $510 per share suggests 35% upside. However, the lowest price target of $230 per share suggests a potential 39% decline from current levels. Read more analyst ratings on SPOT stock The Bottom Line on SPOT Stock Spotify stock makes more sense for bullish investors who can hold onto the stock for at least five to 10 years. However, a high valuation is discouraging. The business model is strong, but the valuation remains an obstacle. Risk-averse investors who want a better entry point may benefit from waiting for a correction. Investors can choose many other stocks that are posting respectable growth rates and have more reasonable valuations than Spotify. For these reasons, I remain neutral on this security. Disclosure

The Trade Desk’s TTD shares have appreciated 79% in the past 12 months, outperforming both the Zacks Computer & Technology sector and the Zacks Internet Services industry. While the broader sector has returned 49.8%, the indus

Below is Validea's guru fundamental report for NETFLIX INC (NFLX). Of the 22 guru strategies we follow, NFLX rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum