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In short, as Netflix closes the decade, its offerings are wider and more in depth than ever before.
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THE BIG SHORT NETFLIX SERIES
Series drama heads can find that prestige itch scratched via The Crown, and if you happen to be dealing with the throes of adolescence…then you have to watch Big Mouth. This year was the year that Netflix expanded its definition of comedy, giving us series like Dead to Me, Russian Doll, and Sex Education (all of which are getting second seasons, by the way). While OITNB and House of Cards might have wrapped up, everyone’s favorite streaming giant has a ton of new work that promises a bright future. But in the same year, Netflix also put one of its first massive hits out to pasture: after 7 seasons, Orange is the New Black closed its prison doors. In the same year that the streaming platform introduced massively acclaimed true crime series like Unbelievable and When They See Us, it also piloted a relatively untested shortened series format whose episodes only run about 15 minutes. Analyst price targets range from a low of $340 per share, to a high of $720 per share.2019 felt like the end of an era for Netflix. Out of 36 analyst ratings, 26 rate it a Buy, 6 analysts rate it a Hold, and 4 analysts rate it a Sell.Īs for price targets, the NFLX average analyst price target today is $599.33 per share, implying around 21.7% in upside from today’s prices. What Analysts are Saying About NFLX StockĪccording to TipRanks, NFLX stock has a consensus rating of Moderate Buy. Perhaps that will be only a modest correction, but a move down to a forward P/E of 30x would still result in a double-digit decline from today’s prices. Even so, if earnings fall short of 20%+ growth, it may be enough to contract Netflix’s valuation. With its content costs this year ($17 billion) the same as last year, earnings growth will still be outsized, even if the top grows at a much slower slip. Fortunately, even with the rising competition, the company’s annual content budget has yet to soar to a point where it threatens earnings growth, if revenue growth comes in less than expected. Why? Namely, with the pandemic wrapping up, Netflix’s subscriber growth is again falling short of expectations. Yet, both estimates are far from being set in stone. If it lives up to these estimates, it may be sufficient to help the stock, today trading for a forward price-to-earnings (P/E) ratio of 37.9x, hold steady at its present price levels. Sell-side estimates call for the company’s revenue to grow around 15%, and its earnings to grow around 23.2%, next year. Netflix’s acquisitions to-date are highly focused on sourcing Oscar contenders, and with this Syrian War film Netflix finally scored a win. Right now, even with the potential risks mentioned above, high growth remains on the menu for NFLX stock going into 2022. The White Helmets Dir: ORLANDO VON EINSIEDEL If you’re looking to satisfy a short film fix on Netflix, hopefully you love documentaries. Slowing Growth May Mean Valuation Contraction However, if the recent deal-making and rival streaming services launches result in its actual results falling short, this richly-priced stock could be at risk of pulling back. and overseas is slowing down.īased on sell-side projections of 2022, growth may still be at a level that allows Netflix to hold onto its current valuation. As the company’s pandemic tailwinds (which helped materially boost results in 2020) fade, the platform’s growth both in the U.S.
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Nonetheless, even as it remains the streaming leader, this doesn’t guarantee it will not impact its underlying growth, as well as the future growth of the NFLX stock price, going forward. With Amazon’s Prime Video (150 million) the second largest, big media’s various streaming platforms are still far behind, with Disney’s ( DIS) Disney+ the only one coming close to hitting 100 million. Even after the still-pending WarnerMedia-Discovery merger closes, this platform will remain at the top of the streaming heap.įor now, Netflix’s ubiquitous service remains the leader by subscriptions worldwide (204 million). How will the recent media deals affect Netflix shares going forward? Sure, as some have pointed out, the Amazon-MGM tie up may do little to affect the streaming space. NFLX Stock and The Impact of Big Media Consolidation Yet, if this “grow into its valuation” catalyst fails to fully play out, the above-mentioned pressures could weigh down further on shares. This could help shares, trading for around $492 per share today, to hold steady. So, what could this do to stock price performance going forward? Even with these headwinds, international growth may still be on the table.