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Nasdaq NFLX NetFlix
11 months 2 weeks ago
Netflix NFLX shares surged to a 52-week high, reaching a peak of $715.66 to close at $704.32 on Sept. 19, in a remarkable display of market confidence. This milestone comes on the heels of several strategic moves and positive mark
Zacks
11 months 2 weeks ago
Netflix (NFLX) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Zacks
11 months 2 weeks ago
In 2022, it came to the limelight that Netflix, Inc. NFLX was losing bucketloads of customers. It was getting seriously affected by competition around the period, and consequent to a crackdown it imposed on consumers who were shar
Zacks
11 months 2 weeks ago
Despite the recent uncertainty and narrative dragging the S&P 500 sideways, such as the historically slow September and the aggressive pivot by the Federal Reserve (the Fed) by cutting up to 50 basis points (bps) instead of the expected 25bps, which might not be as bullish as th
MarketBeat
11 months 2 weeks ago
The S&P 500 Index ($SPX ) (SPY ) Thursday closed up by +1.70%, the Dow Jones Industrials Index ($DOWI ) (DIA ) closed up by +1.26%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) closed up by +2.56%. Stocks on Thursday rallied sharply, with the S&P 500 and Dow...
Barchart
11 months 2 weeks ago
The S&P 500 Index ($SPX ) (SPY ) today is up by +1.56%, the Dow Jones Industrials Index ($DOWI ) (DIA ) is up by +0.95%, and the Nasdaq 100 Index ($IUXX ) (QQQ ) is up by +2.60%. Stocks today are sharply higher, with the S&P 500 and Dow...
Barchart
11 months 2 weeks ago
The Federal Reserve slashed the federal funds rate (overnight interest rate) by 50 basis points on Wednesday, which was double the 25-basis-point adjustment it typically uses. Inflation has fallen sharply over the past year while the unemployment rate has stayed relatively steady
The Motley Fool
11 months 2 weeks ago
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Meta Platforms Inc (Symbol: META), where a total of 391,481 contracts have traded so far, representing approximately 39.1 million underlying shares. That amounts to about
BNK Invest
11 months 2 weeks ago
The Trade Desk’s TTD shares have returned 5.8% in the past month, outperforming both the broader Zacks Computer & Technology sector and the Zacks Internet Services industry. While the broader sector has declined 2.2%, the indu
Zacks
11 months 2 weeks ago
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
Validea
11 months 2 weeks ago
PubMatic PUBM shares have lost 10.4% year to date against the Zacks Computer and Technology Sector and S&P 500 index’s return of 19.5% and 18.1%, respectively.
Zacks
11 months 2 weeks ago
In early trading on Wednesday, shares of The Trade Desk topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.6%. Year to date, The Trade Desk registers a 50.9% gain.
And the worst performing Nasdaq 100 component thus far on the day is N
BNK Invest
11 months 2 weeks ago
Netflix
(NFLX) has outperformed the stock market year-to-date, rewarding investors with a 51% gain during that stretch. However, that’s not the only reason I am bullish on the stock. Rising profits, promising growth opportunities from online ads, and struggling competitors are some additional catalysts that can propel Netflix stock to new highs.
Profit Margins Are Exceptional
Netflix closed the second quarter of 2024 with $9.6 billion in revenue and $2.1 million in net income, resulting in a 22.5% net profit margin. The high-profit margins make me feel bullish on the stock, given how other competitors have fared.
Disney
(DIS) only recently turned an operating profit for its streaming segment. The company reported $47 million in operating income compared to $6.4 billion in revenue, resulting in a far less impressive 0.7% operating margin. Meanwhile, Warner Bros
(WBD) announced a $10 billion loss in the second quarter. While streaming was profitable for the company, those significant losses will hamper the company’s growth opportunities.
Not only did Netflix report solid profit margins, but the company is also growing at a good pace, enhancing the bullish sentiment. Revenue increased by 16.8% year-over-year, a higher growth rate than Disney and Warner Bros. Meanwhile, Netflix’s net income jumped by 44.4% year-over-year. Rising profits will make the streaming giant’s valuation more attractive for long-term investors.
Online Ads Present an Opportunity
Another growing segment in Netflix’s operations is its advertising business, presenting a compelling long-term growth opportunity that makes me bullish on the stock. The company reported 34% quarter-on-quarter growth for its ads tier memberships. Netflix is also working on an in-house ad tech platform that will roll out broadly in 2025. The in-house platform can drive revenue and margins to even higher places.
Those ads have also boosted overall memberships. While the company only delivered 8.0% year-over-year membership growth in Q2 2023, the company’s total members increased by 16.5% year-over-year in Q2 2024. Netflix now has 277.65 million total members, and the advertising tier should get the company beyond 300 million members next year.
Netflix’s decision to remove its Basic plan further demonstrates the rising profits from its advertising. The Basic plan costs $11.99/mo compared to the ad tier’s $6.99/mo price point. Also, as NFLX sees a promising runway for its online advertising business, it can become an advertising leader. It won’t reach the ranks of Alphabet
(GOOGL) or Meta Platforms
(META), but the company can gain plenty of market share in the industry.
Streaming Is the Main Focus
Netflix’s ability to focus on streaming without addressing ailing business components is another reason investors should feel bullish. While Disney and Warner Bros have each reported profitable quarters for their streaming services, both companies have significant obstacles that make future growth more difficult.
Disney reported year-over-year declining revenue in its linear networks business. That part of the business makes up more than 10% of total revenue. Disney Parks also indicated some struggles. Revenue only increased by 2% year-over-year. Operating income for Disney Parks dropped by 3% year-over-year. Warner Bros has its own challenges and reported declining revenue in the second quarter. Disney and Warner Bros shares are down by 30% and 68% over the past five years.
Netflix, on the other hand, doesn’t have those issues because it’s a pure streaming play. Netflix doesn’t have parks, cable TV, or extraneous income streams that drag down the stock. While putting all your eggs in one basket is risky, NFLX diversifies its revenue with online ads. The company’s ability to focus solely on streaming for several years explains why its stock has performed well despite many competing stocks losing investors a lot of money.
Is Netflix Stock a Buy?
NFLX stock is currently rated as a Moderate Buy with a projected 1% upside from current levels. The highest price target of $900 implies that the stock can gain an additional 27%. NFLX has 37 analyst ratings, which include 24 Buy ratings, 12 Hold ratings, and one Sell rating.
See more NFLX analyst ratings
The Bottom Line on NFLX
Most streaming companies aren’t good stocks. Disney and Warner Bros. are two of the many choices that have decimated shareholder value over the past five years. However, Netflix is an exception to the rule, having rallied by 161% over the past five years.
Netflix reports high revenue and net income growth as new members flock to the streaming platform. The advertising tier is accelerating quickly and can turn Netflix into an online advertising leader. Furthermore, the company has high profit margins that should make the valuation more attractive in the future.
The company’s top-tier product is enough to attract investors. However, the lack of robust competitors allows Netflix to maintain its dominant lead and gain market share. Netflix’s growth rates suggest that the company will exceed 300 million members by the end of 2025. This development should translate into solid gains for long-term investors. Therefore, I am bullish on NFLX stock.
Disclosure
TipRanks
11 months 2 weeks ago
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
Validea
11 months 2 weeks ago
Thanks to its relative underperformance over the last couple of years, Alphabet is the cheapest Magnificent 7 stock now. While a section of the market is fearful about the Google parent, it might pay off to get a little greedy here.
Barchart
11 months 2 weeks ago
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Communication Services Select Sector SPDR Fund (Symbol: XLC) where we have detected an approximate $140.4 million dollar outflow -- that's a 0.8
BNK Invest
11 months 2 weeks ago
Investors in Netflix Inc (Symbol: NFLX) saw new options begin trading this week, for the January 2027 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 850 days until expiration the newly trading contracts r
BNK Invest
11 months 2 weeks ago
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
Validea
11 months 2 weeks ago
Anime cartoons have been a red-hot entertainment growth segment, and Sony is one of the biggest beneficiaries of the growing global audience outside of Japan for anime series.
Barchart
11 months 2 weeks ago
Netflix (NFLX) ended the recent trading session at $696.50, demonstrating a -0.08% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.13%. On the other hand, the Dow
Zacks
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4 hours 53 minutes ago
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