Netflix nice earning but need

Netflix nice earning but need buy this i don't think too high becareful fall back soon!

Netflix Q3 Earnings: Growth Story Continues, Why I'm Bullish

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":361364865687800,"tweetId":"361364865687800","gmtCreate":1729257322855,"gmtModify":1729257328167,"author":{"id":4090366056885380,"idStr":"4090366056885380","authorId":4090366056885380,"authorIdStr":"4090366056885380","name":"Yu trader","avatar":"https://community-static.tradeup.com/news/e881a88bdcd6d67274ad52375e6cc95d","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":6,"crmLevelSwitch":1,"currentWearingBadge":{"badgeId":"4e86300037264823b9bb00ff44fc0f19-6","templateUuid":"4e86300037264823b9bb00ff44fc0f19","name":"Live trading challenger","description":"for 12 months","bigImgUrl":"https://community-static.tradeup.com/news/b76669c276447115bf9cde881b0cba68","smallImgUrl":"https://community-static.tradeup.com/news/6d5ffd25685d045ade4bb948ef8fd5c3","grayImgUrl":"https://community-static.tradeup.com/news/076cd4597f6ea22aabdd4f6a12b2c293","redirectLinkEnabled":0,"redirectLink":"https://www.tigerbrokers.com.sg/activity/market/2023/stock-contest?adcode=StockContest2023","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.09.03","individualDisplayEnabled":0},"individualDisplayBadges":[],"fanSize":16,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"html":"<html><head></head><body><p>Netflix nice earning but need buy this i don't think too high becareful fall back soon!</p></body></html>","htmlText":"<html><head></head><body><p>Netflix nice earning but need buy this i don't think too high becareful fall back soon!</p></body></html>","text":"Netflix nice earning but need buy this i don't think too high becareful fall back soon!","highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/361364865687800","repostId":2476471994,"repostType":2,"repost":{"id":"2476471994","kind":"highlight","pubTimestamp":1729256520,"share":"https://www.laohu8.com/m/news/2476471994?lang=&edition=full","pubTime":"2024-10-18 21:02","market":"hk","language":"en","title":"Netflix Q3 Earnings: Growth Story Continues, Why I'm Bullish","url":"https://stock-news.laohu8.com/highlight/detail?id=2476471994","media":"seekingalpha","summary":"Netflix's recent earnings beat expectations, but guidance emphasizes investing for growth, requiring investor patience for profitability improvements.Despite intense competition, Netflix's stable subs","content":"<html><head></head><body><ul style=\"\"><li><p>Netflix&#39;s recent earnings beat expectations, but guidance emphasizes investing for growth, requiring investor patience for profitability improvements.</p></li><li><p>Despite intense competition, Netflix&#39;s stable subscriber base, diverse content, and strategic pricing plans project strong future growth.</p></li><li><p>Netflix&#39;s valuation at 25x next year&#39;s operating profits is sensible, given its proven ability to navigate competitive pressures and monetize effectively.</p></li><li><p>With mid-teen revenue growth rates and strategic investments, Netflix offers a compelling long-term growth opportunity despite a cautious profitability outlook for 2025.</p></li></ul><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/7128a0c1ed438b49e046be24a9953c2f\" tg-width=\"750\" tg-height=\"500\"/></p><p></p><h2 id=\"id_1509274746\">Investment Thesis</h2><p>Netflix (NASDAQ:NFLX) delivered investors with a strong Q3 2024 earnings results. Given that expectations were already high, with the stock near its all-time highs, investors needed to be blown away by these results.</p><p>And instead, even as Netflix delivered a beat on the top and the bottom line, its guidance was one that put the notion of &#39;&#39;investing for growth&#39;&#39; back on the table.</p><p>Therefore, investors will have to be patient to see further improvements in profitability.</p><p>However, given this set of results, I believe that investors will give Netflix a pass. After all, paying 25x next year&#39;s operating profits is not a rich multiple for Netflix.</p><p>In conclusion, there&#39;s a lot to like here.</p><h2 id=\"id_3524258063\">Rapid Recap</h2><p>Back in April, I said,</p><blockquote><p>I believe that in the coming few quarters, investors will look back to $581 per share as a cheap price for Netflix.</p></blockquote><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/94cfe37f2f7553b7d271188ec7fa5849\" alt=\"Author&#39;s work on NFLX\" title=\"Author&#39;s work on NFLX\" tg-width=\"316\" tg-height=\"394\"/><span>Author&#39;s work on NFLX</span></p><p></p><p>In hindsight, it turns out that Netflix was an &#39;&#39;easy&#39;&#39; call. However, allow me to be absolutely clear. Nobody can invest in hindsight. And in fact, Netflix&#39;s stock had plenty of challenging periods since my bullish calls on this name.</p><h2 id=\"id_1918749170\">Netflix&#39;s Near-Term Prospects</h2><p>Netflix’s value proposition to users lies in its ability to deliver an engaging, high-quality entertainment.</p><p>Obviously, some people make the case that there&#39;s an approach for diversity rather than &#39;&#39;high-quality content&#39;&#39;. But the facts are in, and there&#39;s really no other leader in this space.</p><p>Netflix&#39;s goal is rather simple. Keep users engaged and to raise the price on their subscription.</p><p>For Q3 2024, Netflix saw steady subscriber growth and maintained high engagement levels, averaging around two hours of viewing per member per day in 2024.</p><p>With a major content slate and consistent programming, Netflix is projected to reach around 600 million global viewers by 2025. Subscriber growth continues to be driven by both new memberships and strategic pricing plans, including lower-priced, ad-supported tiers.</p><p>However, Netflix faces intense competition in the streaming sector. Rivals like Disney+ (DIS), Amazon Prime (AMZN), are competing fiercely for both content and viewers, putting pressure on Netflix’s growth and market share.</p><p>Meanwhile, Netflix is fighting back by offerings live events and expanding into gaming, as well as through its ad-supported services.</p><p>Given this balanced background, let&#39;s now delve into its fundamentals.</p><h2 id=\"id_4191513266\">Revenue Growth Rates Set A Positive Tone</h2><p></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/5028c04fa04dff939eb5abe7055dd026\" alt=\"NFLX revenue growth rates\" title=\"NFLX revenue growth rates\" tg-width=\"640\" tg-height=\"217\"/><span>NFLX revenue growth rates</span></p><p></p><p>Netflix came out with its 2025 guidance. Investors should expect to see around 13% to 14% y/y revenue growth rates in 2025.</p><p>Since analysts following Netflix had expected to see a sub $44 billion in revenues in 2025 and Netflix believes that even before 2024 is wrapped up, that $44 billion could be possible in 2025, this leaves Netflix with substantial room to upwards revise their guidance.</p><p>In sum, the outlook here looks positive. After all, keep in mind that Netflix was already priced very close to its all-time highs. Hence, expectations heading into this report were hot.</p><p>For Netflix to point towards mid-teens growth after delivering mid-teens revenue growth rates in 2024 is a rather remarkable feat, particularly given that the industry today is so mature and has so many competing offerings.</p><p>With this in mind, let&#39;s discuss its valuation.</p><h2 id=\"id_2946461255\">NFLX Stock Valuation -- 25x Next Year&#39;s Operating Profits</h2><p>As an Inflection investor, I like to buy businesses with a net cash position. That&#39;s my preferred setup, although I can be flexible on occasion. On this front, Netflix scores poorly, with very roughly $7 billion of net debt.</p><p>However, given the stability of its business model, with its stable subscriber base, there&#39;s an argument that could be made that Netflix could have even more debt on its book. Something to keep in mind for the bull thesis.</p><p>Moving on, Netflix is aiming for approximately $12 billion of operating profits in 2025. This leaves the stock priced at 25x next year&#39;s operating profits. A very sensible valuation that makes sense for fresh capital to back.</p><p>Meanwhile, investors&#39; after-hours reacted in a somewhat muted fashion since Netflix just reported close to 30% operating margins, and for the year ahead there&#39;s a discussion around<em> balancing increased profitability with further investments in the business</em>.</p><p>Now, here&#39;s the thing. Generally speaking, investors hate, positively hate, any discussion of investing now, for more profits in the future.</p><p>However, certain companies, including Netflix, which have in the past hand full of years gone from being meaningfully unprofitable businesses, towards providing an indication that more than 30% operating margins could be on the cards in the next couple of years, are giving more leeway.</p><p>After all, Netflix has clearly proven themselves highly capable of being the leaders in this space, and astutely monetizing their platform.</p><p>So while investors would be somewhat put back by the discussion that 2025 won&#39;t be a year for substantially increased profitability, the fact remains that Netflix demonstrated in the past decade that they can successfully invest for growth. And are therefore, given a pass.</p><p>Altogether, there&#39;s a lot to like here, particularly considering the mid-teen growth rates, and paying 25x forward operating profits.</p><h2 id=\"id_3116477918\">The Bottom Line</h2><p>I find myself optimistic about Netflix&#39;s trajectory.</p><p>Despite the cautious tone around profitability growth in 2025, Netflix has repeatedly shown its ability to navigate competitive pressures and emerge stronger. With a proven model, a massive user base, and steady subscriber engagement, I believe the current valuation offers a sensible opportunity for long-term growth.</p><p>The company’s blend of strategic investments and profitability should keep investors &#39;&#39;entertained&#39;&#39;. Ultimately, it looks like Netflix provides a &#39;&#39;stream&#39;&#39; of a great investment opportunity.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Netflix Q3 Earnings: Growth Story Continues, Why I'm Bullish</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNetflix Q3 Earnings: Growth Story Continues, Why I'm Bullish\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-18 21:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4727554-netflix-q3-earnings-growth-story-continues-bullish><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Netflix's recent earnings beat expectations, but guidance emphasizes investing for growth, requiring investor patience for profitability improvements.Despite intense competition, Netflix's stable ...</p>\n\n<a href=\"https://seekingalpha.com/article/4727554-netflix-q3-earnings-growth-story-continues-bullish\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NFLX":"奈飞"},"source_url":"https://seekingalpha.com/article/4727554-netflix-q3-earnings-growth-story-continues-bullish","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2476471994","content_text":"Netflix's recent earnings beat expectations, but guidance emphasizes investing for growth, requiring investor patience for profitability improvements.Despite intense competition, Netflix's stable subscriber base, diverse content, and strategic pricing plans project strong future growth.Netflix's valuation at 25x next year's operating profits is sensible, given its proven ability to navigate competitive pressures and monetize effectively.With mid-teen revenue growth rates and strategic investments, Netflix offers a compelling long-term growth opportunity despite a cautious profitability outlook for 2025.Investment ThesisNetflix (NASDAQ:NFLX) delivered investors with a strong Q3 2024 earnings results. Given that expectations were already high, with the stock near its all-time highs, investors needed to be blown away by these results.And instead, even as Netflix delivered a beat on the top and the bottom line, its guidance was one that put the notion of ''investing for growth'' back on the table.Therefore, investors will have to be patient to see further improvements in profitability.However, given this set of results, I believe that investors will give Netflix a pass. After all, paying 25x next year's operating profits is not a rich multiple for Netflix.In conclusion, there's a lot to like here.Rapid RecapBack in April, I said,I believe that in the coming few quarters, investors will look back to $581 per share as a cheap price for Netflix.Author's work on NFLXIn hindsight, it turns out that Netflix was an ''easy'' call. However, allow me to be absolutely clear. Nobody can invest in hindsight. And in fact, Netflix's stock had plenty of challenging periods since my bullish calls on this name.Netflix's Near-Term ProspectsNetflix’s value proposition to users lies in its ability to deliver an engaging, high-quality entertainment.Obviously, some people make the case that there's an approach for diversity rather than ''high-quality content''. But the facts are in, and there's really no other leader in this space.Netflix's goal is rather simple. Keep users engaged and to raise the price on their subscription.For Q3 2024, Netflix saw steady subscriber growth and maintained high engagement levels, averaging around two hours of viewing per member per day in 2024.With a major content slate and consistent programming, Netflix is projected to reach around 600 million global viewers by 2025. Subscriber growth continues to be driven by both new memberships and strategic pricing plans, including lower-priced, ad-supported tiers.However, Netflix faces intense competition in the streaming sector. Rivals like Disney+ (DIS), Amazon Prime (AMZN), are competing fiercely for both content and viewers, putting pressure on Netflix’s growth and market share.Meanwhile, Netflix is fighting back by offerings live events and expanding into gaming, as well as through its ad-supported services.Given this balanced background, let's now delve into its fundamentals.Revenue Growth Rates Set A Positive ToneNFLX revenue growth ratesNetflix came out with its 2025 guidance. Investors should expect to see around 13% to 14% y/y revenue growth rates in 2025.Since analysts following Netflix had expected to see a sub $44 billion in revenues in 2025 and Netflix believes that even before 2024 is wrapped up, that $44 billion could be possible in 2025, this leaves Netflix with substantial room to upwards revise their guidance.In sum, the outlook here looks positive. After all, keep in mind that Netflix was already priced very close to its all-time highs. Hence, expectations heading into this report were hot.For Netflix to point towards mid-teens growth after delivering mid-teens revenue growth rates in 2024 is a rather remarkable feat, particularly given that the industry today is so mature and has so many competing offerings.With this in mind, let's discuss its valuation.NFLX Stock Valuation -- 25x Next Year's Operating ProfitsAs an Inflection investor, I like to buy businesses with a net cash position. That's my preferred setup, although I can be flexible on occasion. On this front, Netflix scores poorly, with very roughly $7 billion of net debt.However, given the stability of its business model, with its stable subscriber base, there's an argument that could be made that Netflix could have even more debt on its book. Something to keep in mind for the bull thesis.Moving on, Netflix is aiming for approximately $12 billion of operating profits in 2025. This leaves the stock priced at 25x next year's operating profits. A very sensible valuation that makes sense for fresh capital to back.Meanwhile, investors' after-hours reacted in a somewhat muted fashion since Netflix just reported close to 30% operating margins, and for the year ahead there's a discussion around balancing increased profitability with further investments in the business.Now, here's the thing. Generally speaking, investors hate, positively hate, any discussion of investing now, for more profits in the future.However, certain companies, including Netflix, which have in the past hand full of years gone from being meaningfully unprofitable businesses, towards providing an indication that more than 30% operating margins could be on the cards in the next couple of years, are giving more leeway.After all, Netflix has clearly proven themselves highly capable of being the leaders in this space, and astutely monetizing their platform.So while investors would be somewhat put back by the discussion that 2025 won't be a year for substantially increased profitability, the fact remains that Netflix demonstrated in the past decade that they can successfully invest for growth. And are therefore, given a pass.Altogether, there's a lot to like here, particularly considering the mid-teen growth rates, and paying 25x forward operating profits.The Bottom LineI find myself optimistic about Netflix's trajectory.Despite the cautious tone around profitability growth in 2025, Netflix has repeatedly shown its ability to navigate competitive pressures and emerge stronger. With a proven model, a massive user base, and steady subscriber engagement, I believe the current valuation offers a sensible opportunity for long-term growth.The company’s blend of strategic investments and profitability should keep investors ''entertained''. Ultimately, it looks like Netflix provides a ''stream'' of a great investment opportunity.","news_type":1},"isVote":1,"tweetType":1,"viewCount":48,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["NFLX"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":72,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/361364865687800"}