5 THINGS TO CONSIDER WHEN BUYING NFLX STOCK
Here's a quick thread on our partner Brian Feroldi's analysis of Netflix
Since going public in 2002, Netflix (NFLX) stock has risen by 56,000%! That being said, is there still an opportunity to profit from the stock if you buy in today?
NFLX stock is Brian Feroldi’s biggest winner to date, so he and Brian Stoffel analyzed the stock. Here are 5️⃣ gems they shared!
1️⃣ Netflix has a “network effect” of a sort, where the more customers it brings in translate into more funding for quality series. This brings in more subscribers and the cycle begins again! 👀
2️⃣ While the company isn’t exactly in the ideal spot financially, it operates fine with the debt it’s carrying. Cash flow is positive but pales in comparison to the debt. Despite how uneven this looks, the company can comfortably pay this off when it plans to.
3️⃣ Unfortunately, Netflix has lost some of its strengths over the years. Counter-positioning was its biggest edge as it was the first DVD by mail service, then streaming, etc. It is also using more of its revenue to produce shows for the platform.
4️⃣ The company’s founder, Reed Hastings, still has plenty of “skin in the game.” He retains 1.8% of the shares, which comes in at a value of roughly $8 billion! Rest assured, he has plenty of reasons to manage the company for continued growth.
5️⃣ Both Brians found that the current state of Netflix brings it within their “investable” range, but has lost its strengths that would keep them from scooping up even more shares.
Check out their full analysis:
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For more investment-worthy stock picks, check out Brian Stoffel's portfolio
💥 Bonus 💥 To keep themselves held accountable, both Brians keep their portfolios on Stock Card. NFLX stock made it onto Brian Stoffel’s Anti-fragile Portfolio! Follow it for more updates here: