NFLX - Embedded Expectations Analysis - 2020 11 11
Netflix, Inc. (NFLX:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 47.3x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about membership growth, free cash flow, and their ability to deliver valueSpecifically, management may have concerns about their ability to effectively compete for customers' time and satisfy their customers, and they might have concerns about their engagement and churn rates assessment in Canada and Australia. In addition, they may lack confidence in their ability to execute their marketing strategy and get people talking about their shows. Furthermore, they may be downplaying concerns about their dependency on the App Store for discovery, and they may be concerned about their ability to sustain membership growth and improve free cash flow. Finally, they may be overstating the potential of working with certain animators
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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