NETFLIX to launch ad-supported streaming service

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Netflix Intrinsic Value – Netflix($NASDAQ:NFLX) is reportedly considering launching an ad-supported streaming service, according to Bloomberg. The new service would be a lower-priced, stripped-down version of the current Netflix offering and would block downloading of shows and films. It’s not clear how this would affect Netflix’s market and earnings in the long term, but it could be a way for the company to compete with the likes of Hulu and other ad-supported streaming services.

Price History

This news sent NETFLIX stock soaring, with the stock opening at $241.2 and closing at the same price. This new streaming service will be a great way for NETFLIX to generate even more revenue, as it will allow them to sell ad space on their platform. This move is sure to be a success, as NETFLIX has a huge user base that is always growing.

VI Analysis – Netflix Intrinsic Value

A company’s fundamentals reflect its long term potential. The intrinsic value of a stock is the sum of all future cash flows, discounted at the required rate of return. The VI Line is a tool that calculates the intrinsic value of a stock, based on the company’s fundamentals. Currently, NETFLIX is trading at $241.2, which is 53% below its intrinsic value of $517.0. This indicates that the stock is currently undervalued.

Summary

The company’s primary business is its subscription-based streaming service, which offers online streaming from a library of films and television series, including those produced in-house. The news sent Netflix’s stock price down 1.8% the same day. Netflix has been testing the ad-supported service in some markets, and it will be available globally next year. The company says it will offer a “limited selection” of movies and TV shows for free, with ads. The move is a shift for Netflix, which has long been opposed to advertising. But it’s a necessary one as the company faces increased competition from the likes of Disney+, Apple TV+, and HBO Max. With the ad-supported service, Netflix will be able to reach a wider audience and generate additional revenue. It’s a win-win for the company and its shareholders.