Netflix: Going All In Ahead Of Earnings (Rating Upgrade)

YR Research5.44K FollowersFollow5ShareSavePlay(10min)CommentsSummaryNetflix is upgraded to 'Strong Buy' due to sustained 20%+ EPS growth and a 20% valuation discount.Concerns over engagement and saturation are overstated; NFLX leads in retention, acquisition, and 'quality' engagement metrics.Advertising expansion, price hikes, and international growth drive ARPU and support a robust multi-year growth runway.Q1 earnings likely present positive catalysts, with margin improvement and guidance upgrades expected post-Warner Bros. acquisition noise. Wachiwit/iStock Editorial via Getty Images Although Netflix (NFLX) stock is up about 25% from the February lows, shares are still nearly 30% below all-time highs. This once perfectly clean story has become much noisier in the past six months, in light of a failed Warner Bros. Discovery (This article was written byYR Research5.44K FollowersFollowI aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their downside risk is too high.Analyst’s Disclosure: I/we have a beneficial long position in the shares of NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.