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Three reasons to buy Netflix stocks as if there is no tomorrow

Netflix (NFLX -2.06%)) Thanks to continuous innovation, we have a long history with investments in binge eating with market revenue.

Streaming video giants’ shares have increased by 50% over the past year, and the prospects are powerful at any time. In fact, it was the message of Spencer Neumann, the chief financial officer, when the company repeatedly “starting” at the recent investor conference.

Let’s take a look at three reasons to consider purchasing Netflix stocks today.

1. Member exercise

2024 was an innovative year of Netflix. Some of the strategic initiatives have been successfully proven and the company has grown.

In the fourth quarter, we added 19 million net paid members and finished with 13 million. More than half of these additional added advertising support classes have been selected, starting from the US Netflix from $ 6.99 a month, using the viewership base to significant marketing transactions and strengthening profits beyond traditional subscriptions.

At the same time, the company has advanced response to higher prices in global standards and premium plans, and major international markets such as Latin America represent important growth drivers.

The result was impressive. In 2024, sales rose 16%, while the scale was improved, and more than 65% higher, the EPS was promoted. yahoo! In finance, Netflix will provide sales growth of 14% this year as EPS rises by 25%.

Metrics 2024 2025 estimated
revenue $ 39 billion $ 44.3 billion
Revenue growth (yoy) 15.6% 13.7%
EPS $ 19.83 $ 24.80
EPS growth (yoy) 64.8% 25.1%

Data Source: Yahoo! financial resources. yoy = over a year.

2. Programming catalyst

Perhaps the best reason to invest in Netflix is ​​because of the strength of exclusive content. In 2024, this company is more No. There is a show. NielsenThe ‘Weekly “Streaming Top 10” chart is combined than all other streaming platforms, and the show on the list records almost three times more viewing time than the closest competitors.

This year’s expectation for the last season Strangers And season 3 Squid game- Two releases that can help Netflix to keep viewers high. It was also a major development to add live programming and sports to the catalog. Netflix is ​​Jake Paul VS. With Mike Tyson Boxing Match, it became the most stream sports event, and with the first broadcast of Live NFL Games, we captured the toes last year. Christmas Gamei special.

In addition to these events, as well as recent launches WWE RAW Pro wrestling and 2025 Screen Actress Guild AwardSignal the next step of Netflix’s evolution with a wider entertainment power.

The two are watching TV in the living room.

Image Source: Getty Image.

3. Powerful evaluation

Netflix’s current evaluation seems to be attractive considering strong operation and financial outlook. Stocks are traded at 36 times the consensus 2025 EPS estimates, which have a five -year average P/E ratio than about 47, indicating that it can be undervalued. Netflix’s ability, which continues to create profitable growth with more platforms, can support higher premiums.

NFLX PE ratio (Forward) chart

Data of YCHARTS.

This is a great option

There are many things to like about Netflix and are optimistic about stocks. Although the company is not necessarily immune to the slowing of the global economy, the new low -priced advertising support group can help members to maintain the screen on the screen while supporting the growth prospects in a changing economic environment.

Netflix stocks, which are not determined by short -term market swings for investors who believe that the company is in the early stages of the maximum potential when the company is actually expanding internationally, is an excellent option for diversified portfolios.

Dan Victor has no location in any of the shares mentioned. MOTLEY FOOL is located and Netflix is ​​recommended. The MOTLEY FOOL has a public policy.

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