Netflix is undervalued and presents a strong buy opportunity with significant upside potential.

The next stock that I think is a great buying opportunity is the streaming pioneer Netflix. I calculated a fair value of the business at $129 and the current market price is $82.

Based on this difference, I calculated an upside here of 59% for Netflix over the next 12 to 18 months. One of the more bullish factors is the streaming tailwind. Consuming content via a streaming subscription is so much more convenient than over a cable or satellite subscription.

That's causing every year millions of people cancelling their cable and satellite subscription and moving to streaming exclusively.

Secondly, the company has built up a strong proprietary learning experience over the many years in creating its own content. It's now one of the better studios in terms of creating content that people love to watch.

That's something that's difficult to replicate and it reduces the company's reliance on other studios. It's no longer licensing as much content from other studios. It's creating its own content and that allows the company to build on that proprietary learning and separate itself even further from other streaming services.

One of the more bearish factors is the shifting consumer behavior, watching more short form content instead of spending time watching a full show or a movie. uh platforms like Tik Tok, Instagram reels are taking up a lot more of people's attention, a lot more of people's time, and that could be a headwind for Netflix.

Secondly, investor sentiment has turned sour. Investors seem to not like Netflix stock. Ever since the company made that bid to acquire Warner Brothers, investor sentiment turned negative.

Despite those factors, I think Netflix is a great buying opportunity. I own Netflix stock in my portfolio and I'm interested in adding more as well.