Netflix: Hidden Assets And Valuation Could Lead To Additional Upside
Summary
- Netflix's stock has surged by over 80% since we last provided coverage. Some might consider the stock overbought. However, we argue that additional upside is in store.
- NFLX has shown robust growth in LATAM. Moreover, its UCAN segment sets a base for advertising revenue.
- APAC growth has slowed in recent quarters. Despite its slowing growth and rising competition, China's stimulus package provides a turnaround opportunity to APAC.
- Our valuation of Netflix's stock suggests it is an undervalued asset with robust ordinary shareholder return metrics.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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