* Netflix recently reported its third-quarter results, including a noncash tax charge related to a Brazilian Supreme Court ruling, and announced a ten-for-one stock split approved by its Board of Directors to increase accessibility for employees in its stock option program.
* Meanwhile, the company is expanding its global content reach with the runaway success of "KPop Demon Hunters" and new licensing partnerships with major toy makers Mattel and Hasbro, further diversifying its revenue streams beyond streaming.
* We'll explore how Netflix's significant stock split and global licensing push may influence the current investment narrative and future growth outlook.
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Netflix Investment Narrative Recap
For anyone considering Netflix as a long-term holding, confidence in its ability to balance ongoing content investment with international growth is essential. The recent stock split primarily supports employee participation and is unlikely to significantly affect near-term catalysts or alter the biggest risk, which remains intensifying competition and the associated pressure on margins.
Among Netflix's recent announcements, its licensing partnerships with Mattel and Hasbro stand out, building on the blockbuster global reach of "KPop Demon Hunters." This expansion beyond streaming taps into new revenue streams and showcases the company's efforts to diversify earnings, which directly supports its ambitions for durable international growth.
But just as global reach offers promise, rising content costs and crowded streaming markets mean investors should not overlook the ongoing risk that...
Read the full narrative on Netflix (it's free!)
Netflix's outlook anticipates $59.4 billion in revenue and $17.7 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 12.5% and a $7.5 billion increase in earnings from the current $10.2 billion.
Uncover how Netflix's forecasts yield a $1350 fair value, a 21% upside to its current price.
Exploring Other Perspectives
Simply Wall St Community members submitted 49 fair value forecasts for Netflix, with estimates spanning from US$797.74 to US$1,825.07 per share. While some anticipate strong upside from global expansion and new licensing channels, remember that opinions differ sharply and exploring multiple viewpoints is key.
Explore 49 other fair value estimates on Netflix - why the stock might be worth 29% less than the current price!
Build Your Own Netflix Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.