A case for NFLX: $500 is not a dream# Stock
r*m
1 楼
I just presented a case against NFLX, now a case for it.
NFLX will soon have 50M subscribers globally, and the number could reach 60M
in the not so distant future. NFLX has 60M shares out standing. So, pretty
soon, each NFLX share is backed by one subscriber.
Right now, NFLX charges $7.99 a month, and the EPS is around $2 per year. It
's expected that NFLX will increase the monthly fee to $9.99, and hopefully
not losing a significant number of costumers for doing so. This extra $2 per
month could translate into pure profit for NFLX, assuming NFLX could
control the cost of the service at the current level. Therefore, NFLX will
potentially increase its EPS to $26 per year. Given a PE of 20, that's $520
a share.
NFLX will soon have 50M subscribers globally, and the number could reach 60M
in the not so distant future. NFLX has 60M shares out standing. So, pretty
soon, each NFLX share is backed by one subscriber.
Right now, NFLX charges $7.99 a month, and the EPS is around $2 per year. It
's expected that NFLX will increase the monthly fee to $9.99, and hopefully
not losing a significant number of costumers for doing so. This extra $2 per
month could translate into pure profit for NFLX, assuming NFLX could
control the cost of the service at the current level. Therefore, NFLX will
potentially increase its EPS to $26 per year. Given a PE of 20, that's $520
a share.