Last Updated: 13 Sep 2024
Executive Summary
Netflix Inc. (NFLX) is a leading global streaming entertainment company with a market capitalization of $292.46 billion. The company's strong financial performance, including revenue growth of 16.8% and earnings growth of 48.3% year-over-year, has driven its stock price to $686.8. Analysts are generally bullish on Netflix, with 11 analysts rating it a strong buy and 18 rating it a buy.
Company Overview
Netflix was founded in 1997 and has grown to become the world's largest streaming service, with over 231 million paid memberships in over 190 countries. The company offers a wide range of original and licensed content, including movies, TV shows, documentaries, and stand-up comedy specials. Netflix also operates a production studio that produces its own original content.
Fundamental Analysis
Netflix's financial performance has been strong in recent years. In the latest quarter, the company reported revenue of $36.3 billion, up 16.8% year-over-year. Net income was $1.7 billion, up 48.3% year-over-year. The company's profit margin is 19.5%, and its operating margin is 27.2%. Netflix has a strong balance sheet, with $8.9 billion in EBITDA and $51.52 in book value per share.
Technical Analysis
Netflix's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is above 50, indicating that the stock is overbought. However, the moving average convergence divergence (MACD) is above its signal line, indicating that the stock is still in a bullish trend.
Short Term Outlook
In the short term, Netflix's stock price is likely to continue to trade in a range. The stock is overbought, but the MACD is still bullish. If the stock price can break above $700, it could continue to move higher. However, if the stock price falls below $650, it could pull back to its 200-day moving average.
Long Term Outlook
In the long term, Netflix's stock price is likely to continue to grow. The company is a leader in the streaming entertainment industry, and it is well-positioned to benefit from the continued growth of the streaming market. Netflix is also investing heavily in original content, which is likely to drive subscriber growth in the future.
Analyst Recommendations
Analysts are generally bullish on Netflix. The consensus analyst rating is a buy, with a target price of $694.92. Eleven analysts have a strong buy rating on the stock, 18 have a buy rating, 16 have a hold rating, and one has a sell rating.
