#1 - Netflix (NASDAQ:NFLX)
Netflix (NASDAQ: NFLX) - There is a psychology to many selloffs, and Netflix seems to fit into that pattern very well. The streaming content provider’s stock has dropped nearly 20% since mid-July. While some analysts may have had the stock overvalued, it’s fair to ask if the selloff has gone too far. Here’s why. For starters, Netflix seems to be taking a hit for wanting to be accurate. In three out of their last 10 quarters, the company has overestimated their membership growth. But they are still increasing membership, and a closer look shows that their membership growth in the first half of 2018 was significantly ahead of that from 2017. And the larger question is the story for Netflix is not about granular growth as measured quarter by quarter, it’s about how fast the company is growing. That is a story that shows a 40% year-over-year revenue increase and a 25% growth in streaming subscribers. Some analysts are projecting Netflix’s earnings per share (EPS) to grow by 60% per year for the next five years. All of those metrics don’t take into account their international growth. Membership worldwide has risen 40% year over year with revenue increasing by 65% over the same period. And Netflix has demonstrated an ability to raise their current prices while continuing to add new subscribers.
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
- $901.88
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $764.82 (15.2% Downside)
