NFLX - Discovery: Low Valuation Good Growth Prospects And Potential For Retail Activism
- Discovery has entered a new phase of growth with Discovery plus launch which offers better monetization through higher ARPUs and convenient to use offerings.
- Discovery plus is likely to have higher margins and lower breakeven point given its leadership position in non-scripted content.
- The stock is trading at less than 5x FCF of its legacy business while the company's next-generation initiatives are taking off.
- I believe low valuations, high short interest, successful pivot to Discovery plus platform gives stock significant upside and makes it a good candidate for "retail activism".
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Discovery: Low Valuation, Good Growth Prospects And Potential For Retail Activism