#5 - Netflix (NASDAQ:NFLX)
Netflix Finally, we’ll take a look at Netflix (NASDAQ:NFLX) which is ironically banned in China. But it operates virtually everywhere else in the world. And as if people needed any more reason to stay inside and binge watch Netflix, the coronavirus is giving them the perfect reason to do just that. Until the virus is deemed to be under control, it’s likely that consumers will be making different decisions of what to do with their disposable income. Public events may suffer. Activities like streaming services should benefit. And Netflix has the prime mover advantage. Many consumers view Netflix as a form of comfort food.
However, like DocuSign, don’t simply dismiss Netflix as a play against the virus. Last quarter, the company’s revenue surprised many analysts by climbing 31% on a year-over-year basis. Earnings were also a pleasant surprise with the company posting earnings per share (EPS) of $4.13 for the full year which was a 54% year-over-year increase.
And perhaps more importantly, the company saw its paid subscriber base climb to 8.76 million compared to a forecast for 7.6 million.
However, unlike a couple of the other stocks in this presentation, I don’t necessarily see NFLX stock as a long-term play. The company still has some fundamental issues that make its long-term outlook a little shaky for me. But for now, the company may benefit from consumers desire to stick close to home.
About Netflix
Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
Read More - Current Price
- $897.79
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $764.82 (14.8% Downside)
One of the greatest fears among investors is the fear of the unknown. Especially when we don’t know what we don’t know. In that regard, if you can find a silver lining in the correction last week, it is that the market had the bandage ripped off. Investors that were complacent about the virus have realized that is a luxury they cannot afford.
At the same time, now that the facts are coming out, it gives investors a chance to react on known variables instead of fearful speculation. And right now, the facts suggest that, while serious, the Covid-19 virus is not the global plague that will have a disproportionate mortality rate.
As an investor, there are opportunities that exist in any market. And last week’s correction is no exception. With enough time for things to settle, investors are already starting to charge back into the market. But rather than take a shotgun approach, they are being more selective. The five stocks we’ve just presented are far from the only ones that may benefit in the coming weeks and months. But they give you a place to start your research.
And if you’re not already a member, now may be a great time to sign-up for MarketBeat All Access. This is your ultimate investor toolkit that gives you information about your investments including real-time analyst ratings, earnings results, dividend information, and much more.
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