Netflix's Rollercoaster Ride | A Must-Watch Stock Analysis!
Wall Street Oasis
Wall Street Oasis
4.9 • 534 Ratings
🗓️ 22 April 2024
⏱️ 14 minutes
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| 0:00.0 | What's up, apes? Welcome back to the five-minute appeal. Today we are going to be talking about Netflix. |
| 0:06.3 | Now, the company reported its first quarter earnings late last week. It was late on Thursday night, and then the stock dropped like a rock on Friday. I didn't mean to rhyme that right there, but I kind of did just spit a bar. So on that high note, let's just go ahead and get right into things here. All right, you guys know how this goes. |
| 0:20.1 | I'm going to be pulling up my trusty little, |
| 0:22.8 | used to be a word document. |
| 0:24.2 | Now it's a full-on kind of a PDF here in Microsoft Edge. Again, don't bully me for using Microsoft Edge. It's the only free one that allows me to use a highlighter here. We, of course, want to highlight the most important things, like the fact that the company is graduating from its growth base. |
| 0:37.8 | That really was the narrative, but that was kind of the theme going on with Netflix's earnings |
| 0:41.7 | report right here, is that they are in the process of transitioning from a very high-flying |
| 0:45.4 | growthy tech name into a more mature and sophisticated company. |
| 0:49.6 | More like a more into that blue chip territory if they weren't there already. |
| 0:53.4 | The stock price over the past year |
| 0:54.6 | has definitely been rewarded for that, trading at a valuation or a market cap of just under about |
| 0:59.3 | $250 billion. That's on a 73% annual return. We can see exactly why revenue growth is very strong, |
| 1:05.7 | about 15% for the year, up to that about $.4, just under 9.4 billion. |
| 1:11.3 | Now, the really good thing that we've seen here is improving margins, especially operating |
| 1:15.0 | and net margins that we can see right here, up close to 25 and 30 percent respectively, |
| 1:20.0 | much better than what we saw at the end of last year and especially one year ago. |
| 1:23.6 | And that's on about $2.3 billion worth of net income, an absolute explosion from the last quarter, |
| 1:28.9 | but there is a lot of seasonality to consider in that factor. So we're not exactly too hyped on |
| 1:33.4 | that 150% growth that just kind of comes with the trends that the company was in seasonally. |
| 1:38.5 | So again, not too hyped on that, but what we definitely are hyped on as this explosion in free |
| 1:43.2 | cash flow growth. So of about |
| 1:44.7 | 35% over the quarter or 1% for the full year. Now, the fact that Netflix has been able to maintain |
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