In this article, I will tell why I’m bullish on Netflix’s ( NASDAQ:NFLX ) stock ahead of the company’s third-quarter results release.
I believe that the company’s expectations and sentiment are particularly bad and that market concerns are exaggerated. Netflix stock , in my opinion, remains appealing because of the company’s business strategy, which is likely to create significant free cash flows in 2022 and beyond. Furthermore, management guided that content costs will be steady in the near term, implying that free cash flows will accelerate in the coming years as the business benefits from previous big content expenditures.
In addition, I believe we are beginning to see some stabilization tendencies in terms of Netflix maintaining its leading position in the streaming industry and improving fundamentals on worldwide app downloads. The excellent second-quarter results signal that we may see a beat on low expectations in the upcoming Q3 2022 reports. Finally, I believe that Netflix’s two new efforts, which aim to monetize the many shared accounts on the platform and provide an advertisement-supported tier in November 2022, will be successful. These projects will produce long-term income and profitability for the company, helping to boost Netflix stock.
Tier Pricing With Strong Possibilities Based on Advertisement
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