About Netflix’s Valuation And Three Risks In 2023


  • Netflix shares still seem overpriced. Also, their service is more expensive than most of its competitors.
  • Netflix is still traded like a growth stock but is increasingly becoming a value stock.
  • Europe is the second most important market for Netflix, but Europeans are more cautious about consumer spending. If they need to save money, Netflix is the obvious choice.
Risk reward ratio / risk management concept : Risk and reward bags on a basic balance scale in equal position, depicts investors use a risk reward ratio to compare the expected return of an investment


Investment Thesis

The explosive growth at Netflix (NASDAQ:NFLX) seems to be over, yet it is still traded as a growth stock on the markets. I believe we will see lower P/E valuations in the next few years as the stock slowly

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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