NFLX - Embedded Expectations Analysis - 2020 05 28
Netflix, Inc. (NFLX:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 45.2x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about their marketing promotions, entertainment trends, and their original contentSpecifically, management may be overstating their contribution to making home confinement a little more bearable and the quality of their original content, including Unorthodox. In addition, they may have concerns about their expected negative free cash flow and the sustainability of Internet usage trends and shifts from linear to streaming on-demand entertainment. Furthermore, they may lack confidence in their ability to continue to operate smoothly through the pandemic, ensure a safe working environment, and push into home improvement and real estate shows. Moreover, they may be exaggerating the prevalence of Netflix-branded programming in their top 10, and they may lack confidence in their ability to optimize their marketing promotions and make their offering in India more competitive
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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