NFLX

• Revenue Growth: Netflix reported a 16.8% YoY increase in revenue for Q2 2024, reaching $9.56 billion, slightly above expectations.

• Net Income: The company achieved a strong net margin of 19.54%, with an EPS of $4.88, beating analyst estimates by $0.14.

• Free Cash Flow: Netflix continues to generate significant free cash flow, supporting its content creation and international expansion strategies.

💰 Valuation Analysis

• P/E Ratio: The stock trades at a P/E ratio of 44.5x, reflecting high expectations for future growth.

• Price/Book Ratio: The current price-to-book ratio is elevated, consistent with its tech and media sector peers, given its dominant market position.

• Market Cap: Approximately $279.30 billion, making Netflix a major player in global media and entertainment.

📈 Growth Metrics

• 2024 EPS Growth Forecast: Analysts project continued growth with an EPS estimate of $19.08 for the full year, supported by Netflix’s expansion into live sports and advertising.

• Price Target: The consensus price target is $681.21, with a potential 1.06% upside. The highest target is $800, while the lowest is $465, reflecting a mix of bullish and cautious sentiments.

🔮 Forecast

Final Summary

• 🚀 Strong Buy: Netflix's strong financials and strategic expansions make it an attractive investment for long-term growth, although current valuation limits immediate upside.

• 💹 Financial Strength: With robust revenue growth and profitability, Netflix is well-positioned to continue leading in the streaming space.

• 🔎 Positive Analyst Sentiment: While most analysts recommend a "Buy," the price target suggests that the stock is approaching its fair value, indicating more modest gains ahead.