Netflix has strong growth levers (ads/international) and cheap valuation; expected 19-25% CAGR base case and outperformance vs S&P 500 in bear case justify aggressive buying.

Okay, number three of these four stocks is Netflix. This stock is running, man. This stock is up 12.6% just in the past month. It is running. It's $81 stock as of right now when it comes to Netflix.

I don't need to explain it. The business model Netflix, you know why? Cuz I bet you the far majority of people watching this video right now, you're a Netflix customer. I would also say almost every single person watching this video right now is aware of Netflix.

Even if you're not a Netflix customer, you're aware of it. It's not like you're like, I never heard of that before, right? Super famous, one of the most famous companies in the world, right?

Revenue chart, exactly what you want to see. I call it a smirking face. It's exactly what we like to see, right? Netflix, they have the ability to go up on their customer base a little bit here and there.

They go up$1, $2 on a plan a month. People aren't cancelling. That's just bottom line, right? Additionally, have always opportunity to grab more subscribers, international growth, right?

And their international business is very small, very small compared to, you know, or excuse me, their ads business, their international business is actually very small as well.

Uh, and that has incredible long-term growth ahead. But the ads business is still very early days. And so understand that advertising business is going to come in clutch over the next I would say 5 to 10 years here right now.

As far as margins, those have trended higher over the past several years for Netflix. Earnings per share has been climbing and we still got a long way to go in regards to earnings per share climb of this company.

Free cash flow has building been building very nicely for Netflix as well. Look at the free cash flow per share of Netflix. I mean, what a change versus where this company was just a few years ago, right? That's incredible.

Now, additionally, when it comes to P ratio, we're actually paying a pretty dang cheap price right now for Netflix, which is the right time to buy. When you can see your free cash flow going like that, and what you have to pay for the stock going like this, and the business model is not under some massive disruption.

It's not like there's some new company that's like going to come take all the Netflix customers or something. It's just unrealistic, right? So, this is exactly what you want to see.

Now, additionally, look at the operating cash flow of Netflix continuing to build, the operating income of Netflix continuing to build as well. And they're bringing down their share count, which is exactly what you want to see, right?

And that's why you're seeing their free cash flow per share skyrocket because if you look at the operating income, look at the operating income of the company and look at the shares outstanding of the company.

The operating income continues to pile up, right? And meanwhile, the shares outstanding is going down. So that's why you're seeing that free cash flow per share number climb substantially there, right? It's exactly what we want to see.

Now, additionally, if we look at my projections, you can run your projections all through thousandx.com, right? I run my projections onx, my bull case for Netflix, 13% revenue growth.

Not a crazy number under a bullcase assumption for Netflix when you think about all the growth levers this company has all over the place, right? Net income growth of 18%. Right?

That gets them at net income margins of 35% come 2030 versus about 30% where they're at in 26. If you're getting those sorts of growth rates of 28 to 33 PS in the bag, right? That puts this at a compounded annual growth rate over the next several years between 25 and 30%.

My base case, just a fancy way of me saying what I actually expect for Netflix, 11% revenue growth on average. Think about all the growth lovers. Very doable number, right? I have been doing 16% net income growth on average per year, right?

25 to 30 PE. Look at this. Getting a 19 to 25% Kaggar here on a base case for Netflix. One of the least risky big techs I could possibly invest in. That's incredible.

But that's not the best part. Let me show you the best part. This is the best part. This is my bare case for Netflix. My bare case for Netflix is 9% revenue growth on average and 14% net income growth on average, right?

A 22 to 27 PE ratio. And I'm still getting a Kaggar in the teens. In the teens, right? That's going to Netflix, even under my barecase assumptions, still going to easily beat the S&P 500 over the next four or five years, right?

And so my worst case scenario for Netflix has a stock going about 134 come 2030, right? And my best case scenario has a stock going about 231. 231 in 2030.

So yeah, can we see why I like Netflix valuation right now? Right now here's the thing, right? I'm adding the stock aggressively right now. And if you look at my buys, I've been buying, buying, buying.

June, July, buying heavy. Still buying this stock, right? But I'm adding as many shares I can as aggressive as I possibly can. I got shares as low as 68.889 right here that I got July 17th, 2026.

I mean, you know, already up 7,700 bucks on that badge there. But yeah, up 15,000. We're really early in regards to Netflix here. So, lot more climbing to do. Love Netflix. Great stock.