“Netflix once again demonstrated a higher pace of sub growth than expected, while also raising price. The combination of a double-digit price increases across 80% of their sub base, combined with some F/X help, drove Netflix revenue +43% y/y, their highest growth rate since 2011 Since we view this as a thesis-confirming result, we take the opportunity to reiterate our thesis. A simple way to think of how we value NFLX is that we capitalize the value of the company at a future “milestone state” (we choose 300mm subs), and discount back to today. Once again, we pull forward our milestone “end state” by another two years (from 2Q29 to 1Q27), once again causing us to raise our Target Price (to $372).”



READ SOURCE

MUST READ  Wall Street nosedives on trade-war worries
SHARE

LEAVE A REPLY

Please enter your comment!
Please enter your name here