During a year plagued by economic declines, countless stocks sunk to some of their lowest lows as hardly any industries were left unscathed. Despite being leaders in their respective sectors, Disney (NYSE: DIS) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) shares plunged over 38% t
Like many other companies, it's been a rough past 12 months for The Walt Disney Company (NYSE: DIS), which is down over 23% over that span, even after rallying more than 23% year to date (as of Jan. 30). As a blue chip stock, Disney has been a staple in many people's portfolios,
Veteran Hollywood producer Peter Chernin and the owner of French TV production group Banijay have expressed an interest in buying a stake in UK broadcaster ITV's Studios, the maker of hit show "Love Island", sources familiar with the matter told Reuters.
The European Union risks missing its target to connect all European households to a gigabit network by 2030, underscoring the need for more investments, according to a study commissioned by telecoms lobbying group ETNO.
Veteran Hollywood producer Peter Chernin and French TV production group Banijay's parent have expressed interest in UK broadcaster ITV's Studios, the maker of hit show "Love Island", sources familiar with the matter told Reuters.
Formula One's surging popularity in the United States, turbocharged by hit Netflix docu-series 'Drive to Survive', has plenty of fuel left in the tank according to MoneyGram chief executive Alex Holmes.
The European Union (EU) will consult the technology and telecoms sectors on whether tech giants like Alphabet Inc's Google, Meta and Amazon.com Inc should subsidize network costs, according to a Commission document seen by Reuters on Tuesday.
Apple AAPL is set to report its first-quarter fiscal 2023 results on Feb 2.Apple expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter (the September-end quarter) due to an unfavorable year-over-year impact
What happened
Shares of Roku (NASDAQ: ROKU) are running 4.5% higher Tuesday morning at 10:29 a.m. ET after the streaming video platform came to an agreement with Warner Bros. Discovery (NASDAQ: WBD) to bring the studio's branded free, ad-supported TV (FAST) channels to the Roku C
Most readers likely have a strong opinion about the direction Netflix (NASDAQ: NFLX), one of the most well-known consumer-facing internet businesses, is heading. The global entertainment heavyweight is at an interesting stage of evolution, going through changes that could benefit
Below is Validea's daily guru fundamental report for NETFLIX INC (NFLX). Of the twelve guru strategies we follow, NFLX rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price r
Warner Bros Discovery Inc WBD.O has reached deals with streaming services Roku Inc ROKU.O and Fox Corp's FOXA.O Tubi to license 2,000 hours of movies and TV series, as it becomes the latest media company to embrace free, ad-supported streaming TV.
Americans watched more streaming video last year than ever before. In all, U.S. viewers streamed more than 19.4 million years of content in 2022, up 27% according to Nielsen's 2022 "Streaming Unwrapped" report.
Netflix (
NASDAQ:NFLX
) stock's comeback has been quite explosive, with shares now up more than 115% off June lows.
Reed Hastings' recent resignation as co-CEO to become the executive chairman comes on a relatively high note, with the company reporting some
decent results. Despite this, questions linger as Netflix enters uncharted territory, with a recession on the horizon and potential catalysts to turn the ship around. Though many analysts may have turned bullish after recent relief gains, I remain neutral on the stock.
The market seems to have looked past the stepping down of Reed Hastings. Investors probably feel more forgiving, given the recent round of encouraging numbers. Still, it's hard to say where Netflix goes from here. The stock's multiple now stands at a more palatable at
36.2 times trailing earnings, a long way from where the stock spent most of last year (around 50-60 times price/earnings).
However, when you consider media stocks trading at single-digit price/earnings multiples, like Paramount (
NASDAQ:PARA
), Netflix still sports a relatively rich multiple. I believe Netflix needs to prove to investors why it deserves to trade at such a wide premium. Undoubtedly, Netflix is the better streamer with a deeper content library. As its rivals look to close the gap, the real question is how Netflix plans to retain or widen it.
Netflix and the Ever-Evolving Streaming Market
The streaming market has gotten crowded, perhaps too crowded for Netflix to remain a growth company worthy of the
FAANG basket. Further, many of the "catalysts" (think an ad-supported tier launch, efforts to crack down on password sharing, and a pivot into the video-gaming market) may not be able to deliver in the way investors expect.
Sure, expectations may be lower today than a year ago, but it's a mystery as to whether they're low enough, especially as streaming peers look to go on the offensive.
Indeed, it's a pivotal time for Netflix as it looks to get its hand in more pies. I think the stakes remain quite high as the industry enters a more mature stage.
To have Reed Hastings stepping back as one of the top bosses doesn't give me a jolt of confidence to step into the stock as it continues to claw back the massive amount of ground it lost last year.
I think the Netflix story is getting a tad messy for analysts to value as it looks to move into parallel businesses like gaming. Many video game stocks are in a rut of their own right now.
It's also becoming harder to adapt to gain an edge over the growing number of rivals hungry to capture the hearts of streamers in an era where economic circumstances could induce subscription-cutting.
For now, Netflix has a growing line-up of mobile games that its peers can't offer. Still, the company needs to do a lot more for its gaming business to positively impact its
financials.
Netflix Needs to Show It Has Game
Last summer, analytics firm Apptopia noted that less than 1% of Netflix subscribers showed interest in its games. Undoubtedly, the requirement to download each Netflix game separately through the Apple (
NASDAQ:AAPL
) App Store as opposed to being able to play through the Netflix app may be impeding interest.
In any case, the gaming push may not have enough at stake to really move the needle. If anything, getting into gaming may introduce more risks than potential rewards, although this could change over time. Nonetheless, where video game stocks sit today is certainly not an encouraging sign for potential market newcomers.
Looking ahead, the company is hard at work on its first big-budget PC game. If it's a hit, Netflix could be saved, and it could warrant a higher price-to-earnings multiple. If not, Netflix could be running short of options and may need to head back into its circle of competence within video content.
That's not a terrible thing, but as the streaming market grows more commoditized, it could be way tougher to grow.
Is Netflix Stock a Buy, According to Analysts?
Turning to Wall Street, NFLX stock comes in as a Moderate Buy. Out of 35 analyst ratings, there are 17 Buys, 16 Holds, and three Sell recommendations. The
average Netflix price target is $347.29, implying downside potential of 1.65%. Analyst price targets range from a low of $215.00 per share to a high of $440.00 per share.
The Bottom Line on Netflix Stock
Netflix stock will be very eventful through 2023. We'll finally get to see how its initiatives impact its top and bottom lines. However, for now, I'd rather wait and see how things pan out. The stock has bounced significantly from its low, and Hastings stepping down has me feeling just a bit doubtful about the sustainability of this rally.
Disclosure
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It’s finally time for big tech to take the spotlight and unveil quarterly results. Needless to say, investors are more than ready to finally see what has transpired behind the scenes.
At Holdings Channel, we have reviewed the latest batch of the 24 most recent 13F filings for the 12/31/2022 reporting period, and noticed that Netflix Inc (Symbol: NFLX) was held by 15 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good ide
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