Is Netflix Stocks Going Higher ?
Is Netflix Stock Going Higher?
Is Netflix a Buy, Sell or Hold?
As you know, as a well known and respected mentor, coach, and stock market trader, I am frequently quoted in the Los Angeles Daily News, CBS MarketWatch.com, Newsday, the San Francisco Chronicle, and StreetIQ.com.
So here’s the deal: Netflix, Inc., an Internet television network, engages in the Internet delivery of TV shows and movies directly on TVs, computers, and mobile devices in the United States and
internationally. It also provides DVDs-by-mail membership services. As of September 9, 2015, the company had approximately 65 million customers in 50 countries.
In October 2015, Netflix raised the price of its most popular streaming subscription by $1 a month to $9.99 for new customers in the U.S., Canada and parts of Latin America following a similar move in Europe.
In October 2015, Netflix raised the price of its most popular streaming subscription by $1 a month to $9.99 for new customers in the U.S., Canada and parts of Latin America following a similar move in Europe.
This price increase is great for share holders because it means the company’s annual revenue will increase. Sure Netflix has hit shows like House Of Cards and Orange Is The New Black, but in the TV business two hit shows will not force the stock price to go higher.
If you continue reading, I will share with you the REAL reason Netflix stock will rise.
Netflix stock has been on the move over the past few years. This company has single-handedly changed the online landscape and how consumers view programing and content. As of October 2015, Netflix had over 65 million customers in 50 countries paying an average price of $8.99 per month.
As of April 2107, Netflix subscriptions have jumped to over 100 million monthly subscribers, some of whom pay $9.95 on a monthly basis. This increase in price causes Netflix quarterly and annual top-line revenue to increase year over year. When Wall Street institutions discover year over year revenue growth, they purchase millions of shares for the long-term.
For the above reasons, I’d have to recommend Netflix stock as a long-term buy.
In addition, over the last 3 years, Netflix has managed to create 5 more hit shows:
Narcos
Bloodline
The Crown
Stranger Things
13 Reasons Why
Is Netflix The New Apple?
Believe it or not, there’s a generation of ten to seventeen year olds who will only know Netflix as their primary way of viewing television shows and movies. The stock has made some investors very, very rich. What made the stock even more attractive was the board of director’s decision in 2015 to split the stock seven for one. This reduced the share price from seven hundred down to one dollars per share.
Post split the retail investor was able to generate huge profits and monthly income by selling bi-weekly covered calls on the stock.
In May 2017 Netflix blew Wall Street away by announcing it had a total of 100 million subscribers worldwide. This is huge in the online space. This rate increase means that Netflix is expected to generate over $11 billion dollars in annual revenue in calendar year 2017. Again, in my view this makes Netflix the new Apple in terms of top-line revenue growth and secures its dominance as the number one streaming service on the planet.
I have to rate this stock a strong buy and a “must-own” in your portfolio, as it appears that the institutional investors will drive the stock price to $150 and beyond per share.
They say a picture is worth a thousand words. Take a look at what would have happened if you’d invested in Netflix five years ago.
Netflix (NFLX) 5 Year Chart*
*$10,000 invested in Netflix five years ago would now be worth over $62,000
*$100,000 invested in Netflix five years ago would now be worth over $620,000
*$1 million dollars invested in Netflix five years ago would now be worth over $6.2 million
The above illustration assumed you purchased Netflix shares for $25 per share five years ago.
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At Wealthy Investor Trade School, I teach three major strategies:
Covered Call Writing: Selling a call option means that you would be selling the right, not the obligation, to someone in the marketplace to buy that stock away from you at a later date.
Dividend Capturing: Institutional investors collect millions of dollars per quarter collecting dividends on Dow components like McDonalds, NIKE and Disney.
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* DISCLAIMER: Stocks and options trading involves risk and is not suitable for every investor. The stocks and options prices vary and, as a result, clients may lose or gain from their original investment. Stock illustrations posted on TheWealthlyInvestor.net web site are for illustration purposes only. Your personal results as a trader/investor may vary from the WI students listed above.
