3 Reasons to Buy Netflix, and 1 Reason to Sell
(NASDAQ: NFLX) has been facing a hypercompetitive industry in recent years as numerous streaming companies vie for viewers' attention. Shares are down 48% from their peak (as of May 25), reflecting this challenging operating environment. To spur growth, Netflix introduced a cheaper, ad-based tier, and the business is cracking down on accounts that share passwords.
Do the beaten-down shares present a potential buying opportunity? Let's look at three reasons why investors would want to buy the top streaming service stock, as well as a compelling reason to sell.
One of top reasons to like Netflix is its improved financial position. The business reported an operating margin of 18% last year, and management predicts it will be higher this year. That's a sign of a healthy business from a profit perspective.
Source Fool.com
Netflix Inc. Stock
Our community is currently high on Netflix Inc. with 81 Buy predictions and 8 Sell predictions.
With a target price of 609 € there is a slightly positive potential of 3.75% for Netflix Inc. compared to the current price of 587.0 €.
