Is Netflix Stock a Good Investment?
Netflix Investment Advice | NFLX |
- Examine Netflix's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Netflix's leadership team and their track record. Good management can help Netflix navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Movies & Entertainment space and any emerging trends that could impact Netflix's business and its evolving consumer preferences.
- Compare Netflix's performance and market position to its competitors. Analyze how Netflix is positioned in terms of product offerings, innovation, and market share.
- Check if Netflix pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Netflix's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Netflix stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Netflix is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details |
Examine Netflix Stock
Researching Netflix's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The fund maintains all of the assets in different exotic instruments.
To determine if Netflix is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Netflix's research are outlined below:
| Over 86.0% of the company shares are owned by institutional investors | |
| Latest headline from techradar.com: Acquisition by Sweeney Anne M of tradable shares of Netflix at 973.7 subject to Rule 16b-3 | |
| The fund maintains all of the assets in different exotic instruments |
Netflix uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Netflix. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Netflix's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 16th of April 2024 Upcoming Quarterly Report | View | |
| 17th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 28th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Netflix's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 397.81 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Netflix's market, we take the total number of its shares issued and multiply it by Netflix's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.Netflix's profitablity analysis
The company has Profit Margin (PM) of 0.22 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.22 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.22.Determining Netflix's profitability involves analyzing its financial statements and using various financial metrics to determine if Netflix is a good buy. For example, gross profit margin measures Netflix's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Netflix's profitability and make more informed investment decisions.
The data published in Netflix's official financial statements typically reflect Netflix's business processes, product offerings, services, and other fundamental events. However, there are additional fundamental indicators that are easier to understand and visualize along the underlying realities that are driving Netflix's quantitative information. For example, before you start analyzing numbers published by Netflix accountants, it's essential to understand Netflix's liquidity, profitability, and earnings quality within the context of the Entertainment space in which it operates.
Please note, the imprecision that can be found in Netflix's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Netflix. Check Netflix's Beneish M Score to see the likelihood of Netflix's management manipulating its earnings.
Evaluate Netflix's management efficiency
Netflix has return on total asset (ROA) of 0.1272 % which means that it generated a profit of $0.1272 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3844 %, meaning that it created $0.3844 on every $100 dollars invested by stockholders. Netflix's management efficiency ratios could be used to measure how well Netflix manages its routine affairs as well as how well it operates its assets and liabilities.The decision-making processes within Netflix are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Beta 1.377 |
Institutional Etf Holders for Netflix
Have you ever been surprised when a price of an equity instrument such as Netflix is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Netflix backward and forwards among themselves. Netflix's institutional investor refers to the entity that pools money to purchase Netflix's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| RNGHX | New Economy Fund | Mutual Fund | World Large-Stock Growth | |
| RGEBX | Growth Fund Of | Mutual Fund | Large Growth | |
| CFNAX | American Funds Fundamental | Mutual Fund | Large Blend | |
| CFNCX | American Funds Fundamental | Mutual Fund | Large Blend | |
| FGHMX | Fidelity Advisor Communication | Mutual Fund | Communications | |
| TVRIX | Guggenheim Directional Allocation | Mutual Fund | Allocation--70% to 85% Equity | |
| AMPCX | Amcap Fund Class | Mutual Fund | Large Growth | |
| PLXGX | Virtus Kar Capital | Mutual Fund | Large Growth |
Basic technical analysis of Netflix Etf
As of the 19th of March, Netflix secures the Downside Deviation of 2.24, risk adjusted performance of 0.0267, and Mean Deviation of 1.65. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Netflix, as well as the relationship between them.Netflix's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Netflix insiders, such as employees or executives, is commonly permitted as long as it does not rely on Netflix's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Netflix insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
David Hyman over a month ago Disposition of 3287 shares by David Hyman of Netflix at 316.95 subject to Rule 16b-3 | ||
Jeffrey Karbowski over a month ago Disposition of 160 shares by Jeffrey Karbowski of Netflix at 1000.0 subject to Rule 16b-3 | ||
Theodore Sarandos over a month ago Disposition of 1444 shares by Theodore Sarandos of Netflix subject to Rule 16b-3 | ||
Smith Bradford L over a month ago Disposition of 847 shares by Smith Bradford L of Netflix at 59.0171 subject to Rule 16b-3 | ||
Hoag Jay C over a month ago Disposition of 110 shares by Hoag Jay C of Netflix at 567.51 subject to Rule 16b-3 |
Netflix's Outstanding Corporate Bonds
Netflix issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Netflix uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Netflix bonds can be classified according to their maturity, which is the date when Netflix has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| NETAPP INC Corp BondUS64110DAL82 | View | |
| US64110DAJ37 Corp BondUS64110DAJ37 | View | |
| US64110DAK00 Corp BondUS64110DAK00 | View | |
| NetFlix 4875 percent Corp BondUS64110LAS51 | View | |
| NetFlix 5875 percent Corp BondUS64110LAT35 | View | |
| NetFlix 5375 percent Corp BondUS64110LAU08 | View | |
| NetFlix 4375 percent Corp BondUS64110LAN64 | View | |
| NetFlix 4875 percent Corp BondUS64110LAV80 | View |
Understand Netflix's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Netflix's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0267 | |||
| Market Risk Adjusted Performance | 0.0489 | |||
| Mean Deviation | 1.65 | |||
| Semi Deviation | 2.2 | |||
| Downside Deviation | 2.24 | |||
| Coefficient Of Variation | 4315.38 | |||
| Standard Deviation | 2.36 | |||
| Variance | 5.55 | |||
| Information Ratio | 0.06 | |||
| Jensen Alpha | 0.1556 | |||
| Total Risk Alpha | 0.3041 | |||
| Sortino Ratio | 0.0631 | |||
| Treynor Ratio | 0.0389 | |||
| Maximum Drawdown | 18.23 | |||
| Value At Risk | (3.21) | |||
| Potential Upside | 3.24 | |||
| Downside Variance | 5.03 | |||
| Semi Variance | 4.82 | |||
| Expected Short fall | (1.81) | |||
| Skewness | 0.2888 | |||
| Kurtosis | 5.37 |
| Risk Adjusted Performance | 0.0267 | |||
| Market Risk Adjusted Performance | 0.0489 | |||
| Mean Deviation | 1.65 | |||
| Semi Deviation | 2.2 | |||
| Downside Deviation | 2.24 | |||
| Coefficient Of Variation | 4315.38 | |||
| Standard Deviation | 2.36 | |||
| Variance | 5.55 | |||
| Information Ratio | 0.06 | |||
| Jensen Alpha | 0.1556 | |||
| Total Risk Alpha | 0.3041 | |||
| Sortino Ratio | 0.0631 | |||
| Treynor Ratio | 0.0389 | |||
| Maximum Drawdown | 18.23 | |||
| Value At Risk | (3.21) | |||
| Potential Upside | 3.24 | |||
| Downside Variance | 5.03 | |||
| Semi Variance | 4.82 | |||
| Expected Short fall | (1.81) | |||
| Skewness | 0.2888 | |||
| Kurtosis | 5.37 |
Consider Netflix's intraday indicators
Netflix intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Netflix etf daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 302677.0 | |||
| Daily Balance Of Power | 0.6707 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 946.0 | |||
| Day Typical Price | 950.5 | |||
| Price Action Indicator | 28.25 | |||
| Period Momentum Indicator | 29.51 | |||
| Relative Strength Index | 41.17 |
Netflix Etf media impact
Far too much social signal, news, headlines, and media speculation about Netflix that are available to investors today. That information is available publicly through Netflix media outlets and privately through word of mouth or via Netflix internal channels. However, regardless of the origin, that massive amount of Netflix data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Netflix news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Netflix relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Netflix's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Netflix alpha.
Netflix Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Netflix can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Netflix Maximum Pain Price Across June 20th 2025 Option Contracts
Netflix's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Netflix close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Netflix's options.
Other Information on Investing in Netflix Etf
Netflix financial ratios help investors to determine whether Netflix Etf is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Netflix with respect to the benefits of owning Netflix security.