Netflix is a buy at $60 per share, with a projected 19.9% compounded growth rate under conservative assumptions, but could drop rapidly if the next earnings report disappoints.
Jump to any passage
Next up, we get to Netflix. This is holding number seven. It's a $16,000 position, $34,000 in gains. Netflix currently trades at $80 per share. The buy-in target I'm setting for this company is $60.
If Netflix is the first company to reach its buyin target, it'll earn the additional $10,000. If we look back at when Netflix has reached $60, it's been some time. So, investors have generally been enthused about Netflix.
They've liked the company, but recently you can see that it's in a downtrend. So, I do believe there's a chance if investors get really soured on Netflix with their next earnings report for whatever reason, we could see the stock drop rapidly. We've seen it before with Netflix.
The buy-in target I'm setting for this company is $60. Now, if we look at the assumptions of what this would look like just mathematically, if we assume that Netflix is going to grow earnings per share at 16%, this is on the low end of where I think it's actually going to grow.
I believe it will be much higher, but this is a more moderate conservative assumption. It grows EPS at 16%. The appropriate multiple for a company of this caliber with this margin this growth profile this TAM I believe is a 24 and then when we look at those assumptions buying it at $60 per share would mean that we get a 19.9% compounded growth rate a 20% kagger would be incredible this would be one of the highest projected forward compounded growth rates of any stock in my portfolio but remember just like any of these other stocks it's whatever one gets there first that's one that I'm going to deploy the $10,000 to.
Watchpoints
What this channel has said about $NFLX
Joseph Carlson After Hours has 2 calls on this stock; only the adjacent ones are shown.