NFLX - Embedded Expectations Analysis - 2018 02 07
ï€ Netflix, Inc. (NFLX:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 74.6x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about costs, investments, and pricingï€ Specifically, management may be concerned about high expected content spend in 2019 and 2020, and may be downplaying concerns about the magnitude of write-downs as a result of the societal reset around sexual harassment. Additionally, they may be exaggerating the success of their investment strategy and its impact on results. Moreover, they may have concerns about their ability to raise prices efficiently going forward, as well as their ability to continue growing globally
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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