Netflix Remains A Winner Despite Growth Risks

Summary:

  • NFLX’s double beat FQ3’24 earnings call and promising FY2025 guidance have underscored why it is likely to remain highly profitable.
  • This is despite the stagnant streaming market share growth and decelerating membership net adds, with the advertising segment yet to be a growth driver in 2025.
  • With NFLX set to release an exciting Q4 slate aided by the highly sticky membership base, we expect the management to deliver another beat (and potentially, raise) performance.
  • Combined with the increasingly rich free cash flow generation and ongoing share retirement, we believe that the stock remains a compelling Buy at every dip.

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NFLX’s High Profitable Investment Thesis Remains Compelling Upon A Moderate Retracement

We previously covered Netflix, Inc. (NASDAQ:NFLX) (NEOE:NFLX:CA) in July 2024, discussing why we had reiterated our Buy rating upon the pullback observed after the


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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