Netflix Stock Intrinsic Value – Netflix a Powerhouse, But Analyst Stays Neutral Amid Growing Competition
January 4, 2024
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Netflix ($NASDAQ:NFLX) is quickly becoming a powerhouse in the streaming television industry. Despite its success, one analyst has chosen to remain neutral and not recommend buying the stock of the company. The analyst’s decision to remain impartial amidst competition is likely due to the increasingly crowded streaming market. With Disney+, Apple+, and other services entering the fray, there is more competition for viewers with each passing day. This means Netflix will have to continue to innovate and differentiate itself from the competition if it hopes to remain successful. At the same time, Netflix has built a strong brand name and customer base.
The company has a library of original programming that has received critical acclaim, and it also offers a wide range of licensed content from other studios. This has helped establish Netflix as one of the top streaming services on the market. Despite all this, one analyst remains neutral on the stock and has yet to make a recommendation. This is likely due to the fact that Netflix is still in a competitive environment and there is no guarantee that it will remain dominant. As competition increases, it will become even more important for Netflix to continually innovate and differentiate itself from the competition.
Price History
Netflix is one of the biggest streaming giants in the world, but it has been facing increasing competition from companies like Amazon Prime Video, Hulu, and Disney+. On Tuesday, NETFLIX stock opened at $483.2 and closed at $468.5, a 3.8% decrease from its previous closing price of 486.9. Despite Netflix’s immense popularity and success, analysts are staying on the sidelines and remain neutral as they monitor the growing competition in the streaming market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Netflix. More…
| Total Revenues | Net Income | Net Margin |
| 32.74k | 4.53k | 13.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Netflix. More…
| Operations | Investing | Financing |
| 6.06k | -1.46k | -3.49k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Netflix. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 49.5k | 27.39k | 50.51 |
Key Ratios Snapshot
Some of the financial key ratios for Netflix are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.2% | 13.7% | 17.7% |
| FCF Margin | ROE | ROA |
| 17.3% | 16.1% | 7.3% |
Analysis – Netflix Stock Intrinsic Value
At GoodWhale, we have conducted an in-depth analysis of NETFLIX’s financials. After our thorough evaluation, we have determined that the intrinsic value of NETFLIX’s share is around $451.5. This value was calculated by using our proprietary Valuation Line. Currently, NETFLIX is traded at $468.5, which is a fair price, but slightly overvalued by 3.8%. Netflix_a_Powerhouse_But_Analyst_Stays_Neutral_Amid_Growing_Competition”>More…
Peers
It has a library of movies and TV shows to choose from. Disney, Paramount, and FuboTV are all streaming services that offer movies and TV shows. Netflix is the most popular of these services.
– The Walt Disney Co ($NYSE:DIS)
The Walt Disney Company has a market capitalization of 186.02 billion as of 2022 and a return on equity of 4.53%. The company operates in the media and entertainment industry and is known for its film and television productions, as well as its theme parks and resorts. Disney also owns and operates a number of cable and broadcast television networks, including ABC, ESPN, and the Disney Channel.
– Paramount Global ($NASDAQ:PARA)
Paramount Global has a market cap of 12.6B as of 2022. The company’s ROE is 18.54%. Paramount Global is a leading provider of global logistics and transportation services. The company offers a full range of logistics and transportation services, including air and ocean freight forwarding, warehousing, trucking, and custom clearance. Paramount Global also offers a wide range of value-added services, such as product sourcing, order management, and supply chain management.
– FuboTV Inc ($NYSE:FUBO)
FuboTV Inc is a television streaming company that offers over 100 live channels. As of 2022, the company has a market capitalization of 681.89 million dollars and a return on equity of -43.27%. The company’s primary service is providing live streaming of television content, however, they also offer a cloud DVR service and a social TV platform. The company is headquartered in New York City.
Summary
Netflix is an iconic brand that has seen tremendous success in the streaming space.
However, competition is increasing from the likes of Amazon, Disney, and Apple. Despite this, one analyst is staying neutral on the stock and is not recommending a buy or sell. This news caused the stock price to move down the same day. Investing in Netflix is a risky venture due to the high level of competition and uncertain future of the industry. Investors should consider multiple factors such as their risk tolerance, financial goals, and the company’s fundamentals before investing in Netflix.
Additionally, investors should stay up-to-date on the company’s news and trends in the streaming industry to make sure they have a clear picture of where Netflix stands in the market.
