Some investors and analysts are writing Netflix' (NASDAQ: NFLX) Mulled a short time ago. Although it brought the results of changing life from the beginning of 2010 to the big period of popularity, streaming experts began to encounter problems, including slow income and growth of bookgers, and continuous competition.
However, Netflix has successfully responded to these challenges and has achieved outstanding financial results in the past few years. Can Netflix keep this momentum? My point is that the person in charge of the streaming media will do this, and can even join the exclusive group in 2032.
As of writing this article, the market value of Netflix is 413 billion US dollars, so in the next seven years, it will need 13.5 % of the compound profit to achieve this goal. Please continue reading to understand why Netflix can pull it away.
Netflix's recent fourth quarter results have once again caused the market to buzz. The company's revenue increased by 16 % year -on -year to $ 100.2 billion. Netflix's net income has almost doubled to $ 1.9 billion, and the number of paid members has increased by 16 % year -on -year to 3016.3 million. A powerful period may not be important in a magnificent plan, but Netflix has a good habit of performing.
Indeed, for many years, the company's first-class growth has slowed-this is usually what happened as the company becomes bigger. It is almost impossible for a company to increase income growth in the same scope as mature. Even so, some people may think that the past cannot guarantee future success. Although this is also a fact, it tells at least some information about business, what is important is the leadership team to lead it. This can be said to be the most critical and most critical factor in the company's success.
Considering the idea of NETFLIX's management for a long time, the idea of introducing advertising support for subscription options for a long time. In the end, with the development of market conditions, they changed their minds, and the results of 180 degrees turned very well. Some CEOs may double their promises, not the company's performance. It was not done by the leadFlix leadership team.
Investors can determine that the company will encounter other challenges by 2032, which will harm its financial performance and reduce its stock price. In the next seven years, the stock will not see the uninterrupted northward path. However, due to many times, Netflix should be able to rebound after any reverse wind slows down.
Netflix is one of the pioneers of the streaming industry. The company has almost no competition in this field for a while. It turns out that the company's business model is very successful and the situation has changed. It is difficult to know how many video streaming platforms are now-but there are many.
However, Netflix is still one of the top dogs. In fact, the company's name is non -formal language and is synonymous with the verb of streaming media. In other words, Netflix benefits from a powerful brand name-strong competitive advantage.
That is not the only source of Netflix's moat. The company also benefited from the network effect. The more the subscribers join the platform, the more data it can collect. Then, it uses this information to guide its content strategy. In addition to many successful programs and movies that have been famous, Netflix has also promoted real -time programming. Last year, it organized several live activities, including sports events, and some of them became the most popular activities in their respective categories.
Compared with Netflix, this platform is smaller, and the prominent platform is unlikely to happen. Therefore, Netflix has the ability to develop booming in a competitive environment-it is doing this now. This is important because the new streaming platform may continue to pop up. fubotvSports -centric leading streaming experts are merging DisneyHulu+live TV. Any platform caused by the merger may be regarded as "new", but its market capacity will be greater than its original single component.
However, this is nothing, its shareholders should worry. Except for the moat of Netflix, it can be said that the streaming media is still insufficient globally. In December, it accounted for 43 % of American TV watching time -one of the most advanced streaming markets. In most other countries, this number is much lower. I think it will not reach its peak by 2032.
Netflix has a big chance. This is another reason why stocks can deliver market revenue in the next seven years and add trillion US dollars clubs. Long -term investors who initiated positions today should not be disappointed.
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Prosper Junior Bakiny has no position in any stock mentioned. Motley Fool has the positions of Netflix, Walt Disney and Fubotv, and recommend Netflix. Motley fools have disclosed policies.
Forecast: This Gaofei Company will become a $ 1 trillion stock from 2032 to 2032