If you are a fan of good-quality series like House of Cards or Narcos, then you know that Netflix is cool. Netflix offers flexible subscription plans and the great library of series and movies. It is fair to say that the streaming service giant is kicking asses of its competitors in the industry. Only Pornhub is an exception, of course.
Besides enjoying top-notch content, there is one extra thing that can make you even more cheerful about this company – Netflix stocks investment. Millennials invest their monies in the fast growing and highly promising tech stocks. This makes Netflix a perfect choice for people in their 20s.
From humble beginnings
Netflix evolved from $300-mln startup dealing with mail-order movie and TV show delivery service to $68-bln leading streaming service. But it wasn’t an easy way for NFLX. Netflix IPO was 15 years ago, in 2002. Initially priced at $15 per share at NASDAQ, the stock price once plummeted below $5 per share. Many early investors at that time felt fucked up. The negative trend persisted for some time until Netflix made its golden decision to start streaming service business in 2007.
Now the stock is worth $181, which is a huge leap forward. Today, Netflix market cap is $77.83 billion. The most recent quarterly revenue is $2.79 bln, while latest EPS is $0.83. The number of new Netflix streaming platform subscribers is soaring. The company reported having around 104 mln of subscribers with 52 mln coming from the US. Previously, Netflix concluded a deal with Disney, which allows the streaming platform to broadcast Disney, Marvel and Pixar films.
We should also mention that such big corporations like BlackRock and the Vanguard Group considered investing in Netflix and successfully became the biggest NFLX institutional shareholders.
Netflix Expansion Ambitions
As the number of subscribers is growing with a lightning speed, Netflix adds more and more in its value. Some dumbasses, indeed, advise shorting NFLX because of their negative free cash flow and other typical bullshit. What they miss out, is that Netflix is oriented towards the long-term growth. In other words, Netflix belongs to the category of stocks that should be in your portfolio for at least 7 years.
First of all, we should mention the company’s outstanding senior management, especially Netflix CEO – Reed Hastings. Netflix managers have been guiding the company through its ups and downs. After 10 years on the market, Netflix has completely changed its business model and achieved a vivid success. This also shows that the management is envisioning the Netflix strategy for many years to come, not just meeting quarterly results. This is why it makes sense to invest in Netflix shares for the longer perspective. With their immense $6 bln product spending, Netflix aims to generate even more mind-blowing content to dig its competitors in shit.
Netflix has a strong position in the domestic market but also aims to capture audiences overseas. Netflix is already operating in 190 countries. Moreover, the company is promoting and streaming many foreign series and films. For example, on NFLX platform you will find the content originating from Denmark, Japan, France, Norway, Australia, Sweden etc. By increasing its global presence, Netflix will get even more subscribers. In turn, this means significantly higher revenues.
Additionally, Netflix plans to release some of its movies in the cinemas like War Machine with Brad Pitt. Who knows, maybe it is going to replace Holywood one beautiful day.