Netflix Stock Performance Analysis

Fundamental Analysis of Netflix Stock

Fundamental analysis refers to the practice of using financial activity to forecast stock prices.

• Revenue: Netflix’s revenue has been growing steadily in recent years, reaching USD30.9 billion in 2022.
• Earnings per share: Netflix’s earnings per share have also been growing steadily, reaching USD9.36 in 2022.
• Free cash flow: Netflix’s free cash flow has been positive in recent years, reaching USD10.7 billion in 2022.
• Debt: Netflix has a moderate amount of debt, with a debt-to-equity ratio of 1.3.
• Margins: Netflix’s margins are high, with a gross margin of 73% and an operating margin of 22%.

Valuation

As of September 11, 2023 Netflix’s stock is trading at a price-to-earnings (P/E) ratio of 37.05. This is higher than the P/E ratio of the S&P 500, which is currently at 21.08. However, Netflix’s P/E ratio is lower than its historical average of 50.

Technical Analysis of Netflix Stock

Technical analysis is the reliance of historical stock price activity to predict future price activity. As of September 11, 2023 Netflix stock (NFLX) is trading at USD442.80. The stock has been on a downward trend since January 2023, but it has been consolidating in recent weeks. The 50-day moving average is at USD432.97, and the 200-day moving average is at USD352.07. The relative strength index (RSI) is at 57.74, which is in the neutral zone.

Technical indicators

The moving average convergence divergence (MACD) indicator is positive, which is bullish. The MACD line is above the signal line, and the histogram is rising. The stochastic oscillator is also positive, and it is rising towards the overbought level.

Support and resistance levels

The nearest support level is at USD419.81, followed by USD402.99. The nearest resistance level is at USD453.45, followed by USD472.70.

Sentiment Analysis of Netflix Stock

Sentiment analysis is the process of determining the emotional tone of a piece of text. It can be used to gauge the public’s opinion on a particular topic, such as a stock. The results of the sentiment analysis are mixed. Some sources are positive about Netflix stock, while others are negative.

The positive sources point to Netflix’s strong content library and its global reach. They also note that Netflix is still growing its subscriber base, albeit at a slower pace than in previous years. The negative sources point to the increasing competition in the streaming market. They also note that Netflix is facing rising content costs. Overall, the sentiment analysis suggests that the public’s opinion on Netflix stock is mixed. There are both positive and negative factors to consider before investing in the stock.

Netflix Inc. Report contains the analysis of Netflix stock performance. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Netflix. Moreover, the report contains analyses of Netflix business strategy, leadership, organizational structure and organizational culture. The report also comprises discussions of Netflix marketing strategy, ecosystem and addresses issues of corporate social responsibility.

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