Investors are so obsessed with Nvidia (NVDA) and Magnificent 7 that they may have forgotten about their old favorite FAANG component, Netflix (NFLX).
do not have everyone is forgetting about the streaming beast. The stock is up 23% since the fourth-quarter earnings report.
I liked some of the calls JPMorgan analyst Doug Anmuth made in a new note this morning.
The first was his reason for remaining bullish on Netflix stock.
“We remain positive on Netflix stock and our bullish case remains: 1) Healthy organic growth, paid share, and price increases will accelerate revenue growth in 2024; 2) Revenue growth across content, advertising, and gaming; Steady operating margin expansion balanced with growth investments; 3) Multi-year free cash flow growth due to improved revenue and cash content discipline; 4) Netflix's strong leadership position in streaming; 5) Potential. sex become global television Netflix has expanded its membership base of 260 million to more than 500 million CTV households worldwide, excluding Russia and China. We believe that Netflix's large scale, strong engagement (approximately 2 hours per day), and variety of content will allow the platform to become the global television over time, meaning that users default to viewing long-form video content. I believe that we will continue to promote this option. ”
And his quick analysis of the upcoming Mike Tyson vs. Jake Paul fight that will air on Netflix:
“Netflix continues to enhance its sports content, primarily targeting sports entertainment and shoulder programming. Key examples include WWE Raw, F1: Drive to Survive, Full Swing, Break Point, Quarterback, Tour de France: Unchained, Netflix Slam, etc. Significantly, Netflix has partnered with Most Valuable Promotions (MVP) to host Jake Paul and Mike Tyson on July 20th, the third live sporting event in history. Streaming the headline heavyweight boxing mega-event. Given the unprecedented accessibility and NFLX's global subscriber base, the idea is to stream the headline heavyweight boxing mega-event, while also attracting meaningful advertising dollars and seasonal Netflix's current focus is on sports entertainment and content, but it doesn't rule out a bigger push, which could incorporate live sports over time. It will be like this.”
