2024-05-14 09:30:00 ET
Summary
- Netflix, Inc. could reach $765 by the end of 2024, driven by solid price momentum and market sentiment.
- Strategic initiatives to convert over 100 million non-paying viewers have significantly increased Netflix’s revenue and subscriber base.
- Despite market share erosion, Netflix's strategic innovations, such as ad-tiers and live-streaming, position it as a leader in the streaming industry.
- Introducing an ad tier and diverse content expansion have enhanced subscriber engagement and broadened revenue sources.
- Netflix plans to boost its content investment to $17 billion by 2024, aiming to enrich its library and strengthen subscriber attraction and retention.
Investment Thesis
In our previous analysis, dated October 2023, we confidently issued a buy rating for Netflix, Inc. ( NFLX ), anticipating significant value unlocking from its initiative to crack down on password sharing. Seven months ago, we projected a fair price of $503 when trading at $372, based on a thorough discounted cash flow, or DCF, model and probabilistic outcomes of Netflix's strategic changes....
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For further details see:
How Netflix Continues To Unlock Shareholder Value