No. of Recommendations: 1
“Netflix valuation is starting to come into potential buying ranges now.”
I initiated a position recently. As Lynch said, buy what you know. My whole family loves the various content they offer. It’s very sticky with only 2% churn. PE is sub-20, near an all time low, and growth ~10%. FCF of $12B for 2026 and growing, as total FCF from 2020-25 was $27B. $2.7B and growing in ad revenue, up 80% over 2025. NFLX is more lean as workforce was cut 6%. Continued steady international growth and they are offering more appealing live events/ sports.
No doubt, competition is intense for streaming and eyeball time but I do like the NFLX risk/ reward as it’s really been taken to the woodshed by Mr. Market and cheap relative to value imo.
