Netflix Q3 Earnings: Growth Story Continues, Why I'm Bullish

(7min)

Summary

  • Netflix's recent earnings beat expectations, but guidance emphasizes investing for growth, requiring investor patience for profitability improvements.
  • Despite intense competition, Netflix's stable subscriber base, diverse content, and strategic pricing plans project strong future growth.
  • Netflix's valuation at 25x next year's operating profits is sensible, given its proven ability to navigate competitive pressures and monetize effectively.
  • With mid-teen revenue growth rates and strategic investments, Netflix offers a compelling long-term growth opportunity despite a cautious profitability outlook for 2025.
  • Looking for a helping hand in the market? Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Learn More »

Netflix

Wachiwit

Investment Thesis

Netflix (NASDAQ:NFLX) delivered investors with a strong Q3 2024 earnings results. Given that expectations were already high, with the stock near its all-time highs, investors needed to be blown away by these results.

And instead, even as

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This article was written by

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.

With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months.

Through his 10+ years analyzing countless companies, Michael has accumulated outstanding professional experience in tech and energy and a following of over 40K on Seeking Alpha.

Michael is the leader of the investing group

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Seeking FCF is an associate of Michael Wiggins De Oliveira

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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