Key insights
- The article discusses Netflix's current valuation, noting its consistent business improvement, strong margins, and rapid growth in its advertising segment. Despite these positives and a significant share buyback authorization, the stock's underperformance relative to the broader market is questioned. The author initiated a position at $75 due to these factors but has seen minimal stock movement. The market's harsh punishment of Netflix's stock is a central theme.
It seems like the business is getting better yoy consistently and well managed, good margins and ads business now growing fast but still the stock dropped more then 30% last year, why is the market punishes them so badly?
They even authorized a 25 billion share buyback program recently that should be another good sign, I’ve started a position when it dipped to 75$ in February for those reasons yet the stock barely moved while the broader market gained.
What do you think about the corrent situation for Netflix?