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Netflix, Inc.
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NFLX Details
Netflix, Inc. (NASDAQ: NFLX), main business, is a video-on-demand streaming service available in almost every country except China.
Why should Investors Sell?
Valuation Methodology: Price to Book Value Multiple Based Relative Valuation
Source: Analysis by Kalkine Group
Stock Recommendation:
The company has posted an increase in revenue. However, excessive operating expenses lead to poor earnings performance, also the company has posted a negative cash flows and lower operating margins of 8.4%, far below its 19 to 20% target. Also at the last closing price the stock is tilted towards its 52W Low. We have valued the stock using Price to Book Value multiple-based relative valuation methodology and arrived at a target price of USD 373.66.
Considering the company's financials, lower margins, market conditions, current valuation, and bearish technical indicators, we believe the decent business fundamentals are adequately reflected at current trading levels. Hence, we recommend a "Sell" rating on the stock at the closing price of USD 457.13, up 7.02%, as of February 01, 2022.
NFLX Daily Technical Chart as on February 01, 2022 (Source: REFINITIV, Analysis by Kalkine Group).
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.
Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.
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Past performance is not a reliable indicator of future performance.
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