![]() ![]() ![]() ![]() Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Netflix's earnings potential next year. So it's pretty clear that Netflix is forecast to grow substantially faster than its industry. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.9% annually. We can infer from the latest estimates that forecasts expect a continuation of Netflix'shistorical trends, as the 14% annualised revenue growth to the end of 2024 is roughly in line with the 14% annual growth over the past five years. Of course, another way to look at these forecasts is to place them into context against the industry itself. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. There are some variant perceptions on Netflix, with the most bullish analyst valuing it at US$700 and the most bearish at US$335 per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. ![]() The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 14% to US$550. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates. In the lead-up to this report, the analysts had been modelling revenues of US$38.2b and earnings per share (EPS) of US$15.79 in 2024. Statutory earnings per share are predicted to shoot up 35% to US$16.70. This reflects a solid 14% improvement in revenue compared to the last 12 months. As of Thursday, that investment would be worth about $293,000, which is a pretty good return.Taking into account the latest results, the consensus forecast from Netflix's 48 analysts is for revenues of US$38.3b in 2024. The chart below shows the value of a $1,000 investment in Netflix stock made at the first day's split-adjusted closing price of $1.20 per share over the following 16 years. ET on Thursday, Netflix was trading at an all-time high of $350.41 per share, with a market capitalization surpassing that of the entertainment mega-giant Disney. Wednesday was the 16th anniversary of Netflix's initial public offering, and an investor buying in then would have made a very impressive return over the years.Īfter initially offering its stock at $15 per share on May 23, 2002, Netflix closed its first day of trading at $16.75, or $1.20 per present-day share after adjusting for stock splits, according to data from Yahoo Finance.Īs of 12:25 p.m. Wednesday was the 16th anniversary of Netflix's initial public offering.Ī $1,000 investment made at the stock's first-day closing price would be worth nearly $300,000 today. ![]()
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