#3 - Netflix (NASDAQ:NFLX)
With a stock that’s climbed nearly 350% on a trailing five-year basis, it’s hard to look at Netflix (NASDAQ:NFLX) as a buy-on-the-dip opportunity. But not because the company continues to add subscribers (it does) or that it is expanding into other countries (it is). Some investors should get excited because the pandemic has given Netflix a chance to get free cash flow (FCF) positive.
But this may be just a fluke of accounting. With the company not producing original content due to the pandemic, the company posted positive free cash flow for the first time in the third quarter. However, all eyes will be on the fourth quarter. Netflix is beginning to create new content again, and they are projecting a best-case scenario that would have the company break even on FCF, or they could post a loss of around $1 billion.
But that would still be a good start towards suggesting the company could finally start to generate positive FCF regularly.
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
- $896.05
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $764.82 (14.6% Downside)
