2024-04-20 09:50:35 ET
Summary
- Netflix shares have returned close to 200% since July 2022, but following Q1 2024 results I am downgrading the stock to "Sell"
- Despite strong results for the first quarter, I am concerned about Netflix growth outlook, while I also believe that shares are trading at a premium to fair value.
- Multiple factors are expected to impact 2024 commercial momentum negatively, including a shift to lower-priced plans as well as geographical shifts in Netflix's growth upside.
- Netflix's decision to stop reporting quarterly membership and ARM figures starting from Q1 2025 is worrisome, as the move is perceived as a likely effort to obscure disappointing numbers.
- For investors looking to gain exposure to the streaming narrative, I argue that Spotify should be the preferred pick over Netflix.
Netflix shares (NFLX) have returned close to 200% since I have advised investors to buy the dip back in July 2022. In a nutshell, I argued that...
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Netflix: I Am Cashing Out