Netflix: Do Not Fall For This Rally


  • We remain bullish on NFLX, attributed to the company’s laser focus on engagement and profitability thus far.
  • Assuming that NFLX fully monetizes the account-sharing households, it could report 330M subscribers by 2025, particularly aided by its low-cost ad-supported tier.
  • As a result, the streaming leader may also achieve its dual goal of being a successful advertising company, with up to $180B in video advertising TAM globally.
  • Nonetheless, with the tremendous recovery thus far, investors must tread with caution in the short term, with the stock trading near its previous support levels.
  • Do not chase this rally yet.

happy boy jumping in the croatian sea


We previously covered Netflix, Inc. (NASDAQ:NFLX) here. Its early performance in the ad-supported tier was pessimistic then. However, we also discussed why we chose to be bullish about the stock, despite our overly bearish stance in the past. NFLX had successfully

NFLX 1Y EV/Revenue and P/E Valuations

S&P Capital IQ

Market Share Of TV & Streaming Views


Age Demographics of NFLX Users In The US

Truelist & Finances Online

NFLX 1Y Stock Price


Disclosure: I/we have a beneficial long position in the shares of NFLX, GOOG, META either through stock ownership, options, or other derivatives. 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.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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