NFLX - Embedded Expectations Analysis - 2019 08 13
Netflix, Inc. (NFLX:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 47.0x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their self-produced content and subscriber growth.Specifically, management may be concerned about their ability to continue growing their total net adds, and they appear concerned about recent slowdowns in subscriber growth. Furthermore, they may be concerned about their ability to maximize the value of the subscription model, and they may be concerned about the sustainability of their self-produced content-driven competitive advantage.
Netflix is engaged in subscription streaming entertainment service including TV series, documentaries and feature films across a variety of genres and languages. Members can watch as much as they want, anytime, anywhere, on any internet-connected screen. Members can play, pause and resume watching, without commercials. Additionally, several members in the United States subscribe to the company's DVD-by-mail service. The company improves its streaming content with a focus on a programming mix of content. The company's members can download a selection of titles for offline viewing. The company operates its business as a global operating segment.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
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- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
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