NFLX is a strong buy; fair value $127 vs current $81 implies 57% upside in 12-18 months.

Netflix is actually one of my favorite stocks to buy right now. I ranked it among the top ten. I own Netflix shares in my portfolio as one of my largest investment positions.

I have estimated the fair value of Netflix shares at $127. The current market price is $81. I expect Netflix stock to rise by 57% over the next 12 to 18 months.

It could be argued that Netflix has a negative relationship with artificial intelligence, meaning that if AI turns out to be a bubble and its developments fail, it could be positive for Netflix, because many AI-based video streaming companies have begun to emerge and produce videos using this technology.

This could threaten to draw some consumption away from Netflix. So, if artificial intelligence fails and consumers turn away from it, that could be great for Netflix. So, this is actually a counterintuitive deal for artificial intelligence from a certain point of view of Netflix.

Of course, Netflix is also benefiting from the positive momentum of digital streaming. Streaming content is much more convenient than receiving it via cable and satellite subscriptions, and this momentum is bringing millions of new customers into the streaming industry.

As the leading company, Netflix is of course benefiting from this shift.

In addition, Netflix has learned how to create content that consumers love and in a way that is incredibly profitable for the company. There are two negative factors for Netflix that investors should be aware of: changing consumer behavior, with people watching more short-form content, like what you see on TikTok, Instagram Reels, or YouTube Shorts.

Increased consumption of this type of content could threaten Netflix's overall content consumption.

The second negative factor is investor sentiment. Investors' view of Netflix stock has worsened since the company made a bid to acquire Warner Bros. Since then, there has been a sense of pessimism surrounding Netflix stock, and I don't know exactly when it will end, but I do know that Netflix stock offers great value.

I actually hope that Netflix stock stays at these levels for a longer period so that I can buy more before the stock goes up.