CA - Netflix Has Been Adjusting In Favor Of My Estimates But There's Still A Decent Upside Left
2024-04-07 11:31:30 ET
Summary
- Stock rose 31.47% (and 75.52% since my first coverage), driven by successful strategies like password-sharing crackdown and ad-enabled tier.
- Password-sharing crackdown could yield $799M and advertisements $16.9B by 2029.
- Fair price estimated at $733.25, and future price is projected at $1,287.74. This last one implies 17.1% annual returns throughout 2029.
- Potential upside stands at 15.3%, which is not as incredible as before. Therefore, I am downgrading the stock to "buy".
Thesis
In my previous article about Netflix , Inc. ( NFLX ) I rated the stock as a strong buy citing that its password-sharing crackdown efforts as well as the inclusion of an ads-enabled tier, will help the stock increase significantly its revenue and net income. I estimated a fair stock price of $941.8 and a future price of $1,466.88 for 2028....
Netflix Has Been Adjusting In Favor Of My Estimates, But There's Still A Decent Upside Left