Company Of The Day: Netflix
What?
Netflix (NASDAQ:NFLX) is raising pricing on its plans in the U.S. by between $1 to $2. The popular HD plan will see its price increase from $14 per month to $15.50.
Why?
- Netflix Stock Downside Scenario: $400
- How Netflix Stock Can Climb To $1,000
- Netflix Stock Q3 Preview: Will The Momentum Slow Down?
- Rising Margins, Ad Growth To Drive Netflix’s Q2 Results, But Stock Is Expensive At $670
- Netflix’s Ad-Driven Surge: Impressive Growth, Pricey Stock
- Up 27% Year To Date, Will Q1 Results Drive Netflix Stock Higher?
With subscriber growth in the U.S. cooling, Netflix is banking on price increases to drive revenue growth. The company carried out its last price hike in late 2020.
So What?
Netflix stock gained about 1% on Friday following the news.
See Our Complete Analysis For Netflix
We estimate Netflix Valuation to be around $635 per share which is 20% above the current market price. This represents a P/EBITDA multiple of 15.3x for the company based on our forecast for Netflix’s EBITDA for the current fiscal year.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
| Returns | Jan 2022 MTD [1] |
2022 YTD [1] |
2017-22 Total [2] |
| NFLX Return | -13% | -13% | 325% |
| S&P 500 Return | -2% | -2% | 108% |
| Trefis MS Portfolio Return | -7% | -7% | 264% |
[1] Month-to-date and year-to-date as of 1/16/2022
[2] Cumulative total returns since the end of 2016