NFLX - Embedded Expectations Analysis - 2021 02 17
Netflix, Inc. (NFLX:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 44.0x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about their product experience, subscriber growth, and content distributionSpecifically, management may lack confidence in their ability to improve their product experience, create more value for subscribers, and sustain their ARPU. In addition, they may be overstating the demand for out-of-home entertainment experiences, the potential of a premium VOD channel or distribution model, and their focus on being one of the largest producers of anime in the world. Furthermore, they may have concerns about long-term exclusivity rights for theatrical releases, short-term headwinds in their Q1 guidance, and the sustainability of demand for their subscription model
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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