Netflix Inc Price and Price Prediction

Netflix, Inc is a streaming service provider for entertainment purposes. Netflix offers online streaming of movies and TV shows through subscription, as well as DVD mail delivery. The company operates through the following segments: US Streaming, US International Streaming and US DVD Service. The US Streaming segment generates revenue from monthly membership fees for streaming video content to subscribers in the United States. The International Streaming segment includes contributions from subscribers outside the Americas. The US DVD Service segment includes domestic DVD rental and mail-order revenue. The company was founded on August 29, 1997 by Marc Randolph and Wilmot Reed Hastings Jr. The headquarters is located in Los Gatos (California, USA).

The company offers a paid subscription streaming channel in more than 190 countries and allows its subscribers to watch a variety of TV series, documentaries and feature films in a variety of genres and languages. Netflix subscribers can watch content anytime, anywhere, on any screen with an Internet connection.

Subscribers have the ability to play, pause, and resume content without commercials. The company offers various subscription plans for the streaming service, the prices of which depend on the country and the features of the tariff plan. Prices for the Company's tariff plans range from $3 to $23 per month. Subscribers can watch Netflix content using any internet-connected device that can have the Netflix app installed, including smart TVs, game consoles, streaming media players, set-top boxes, smartphones and tablets. The Company acquires, licenses and produces content, including original software.

Cost estimate

• Market capitalization 80.12 B
• Company Value (MRQ) 180.974 B
• Company value/EBITDA (ТТМ) 15.2254
• Total shares outstanding (MRQ) 444.274 M
• Number of employees 11.3 K
• Number of shareholders 2.548 K

Positive Factors

• High expectations for revenue growth. In the next 3-5 years, earnings per share may increase by 77% on average per year. By comparison, S&P 500 earnings per share could increase by 20.1%. This year, the EPS decline could be 3.1% with +11.7% for the S&P 500.
• The popularity of streaming video, which has replaced cable.
• Original content including hits.

Risks

• High values ​​of multipliers are not fully confirmed by financial indicators. An increased debt load with generally negative FCF poses a threat to financial stability.
• High competition in the industry. Services such as Disney+, Amazon Prime Video, and Apple TV+ are on the market.
• Negative outlook for 2Q.

Buy or sell shares?

The medium-term view of the NFLX is cautious, the long-term view is moderately positive. Analyst consensus target for 12 months is $322. This implies upside potential of 70% from Tuesday's level. At the same time, the targets for the last couple of months have a very wide range from $226 to $635. Quote for Tuesday is $189. In the region of $160, a support level passes for the securities. Potentially, there is a fairly high probability of NFLX returning to the $230 area. Shares of Netflix Inc. currently suitable for speculative purchases, long-term investment is risky.