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Netflix - a Value Trap or Value Buy - You Decide!Oh. My. Goodness. Today's post is about Netflix. It's down 25% as I type. Yeeeeeesh! So what happened? Well, bad earnings. Again. But here's the thing - this story gets more interesting. I don't own any Netflix, but I am watching it since the well known investor Bill Ackman plowed $1 billion into it last quarter. Oh, and by the way, OUCHY... He's now lost $250 million on that investment. Kids, don't forget, it's not a loss until you sell 😜 60%... That's how much Netflix is down since its all-time highs a few months ago. Anyone who bought at those highs has been cut in half and then some. Investing and trading is not easy, and over the years, this always happens. Drawdowns, crashes, and bull markets and bear markets all come and go. The Netflix story fits all of that. Maybe that's why I felt like writing about it. I should also be totally clear: it's on my watchlist for a trade. Let's dive in a little more, though, before deciding if we even should trade it. I was pretty surprised to learn that Netflix's PE ratio is the lowest it's been in over 10 years. Netflix has a PE ratio in the 20s. If you look forward a year or so, its PE ratio is more like 18. At this point, you have to wonder, is Netflix a value investment? Wait, it's no longer a growth stock? Talk about the end of an era. I never thought I would see Netflix trading at a PE ratio like IBM. The thing is, if Netflix can actually start churning out free cash flow at these levels, it really might be an epic value investment. It would also mean buyback time for them. Netflix has about $7 billion in cash. Surely they want to use some of this for their reinvestments, but also, at multi-year lows, a $2 billion buyback here is almost 2% of the company. Reed Hastings is a smart dude. He knows. Let's keep going. Netflix's market cap is approaching $100B again. This is its lowest valuation since 2019 and 2018. In Both instances, Netflix bounced and bounced rather quickly. Hold up, Stef. Hold up. Are your really writing about potentially buying the dip in Netflix? No. Not at all. I am only thinking out loud. There is a bearish cash. As most of us know, Netflix now has more competition than ever. There are more and more streaming platforms. In addition, is their content even that great? How does it compare to other companies? This is a determining factor as well. And, if it is the case, Netlfix is value trap. It will compete and compete, but no longer be a shiny growth stock. Anyways, those are my thoughts. Streamlined and free to all of you. No subscription required. I'll share an update if I actually trade this. In the meantime, my feet are up and I am watching in awe. The best entertainment is markets.
NASDAQ:NFLX
by scheplick
16
TD: Long term potentialFA: Operational cash flow has remained steady. Financing operations were high in 2020 at 224B. They dropped of significantly in 2021 -45B but are now growing back each quarter to 22B. Its still a long way off 2020 but potential financing growth is there as economies come back from the pandemic. The balance sheet is looking healthy. Profit margins are increasing +29.7% whilst debt to assets is relatively stable ( although very high) They have beaten all earning estimates in 2021. TA: 1D Chart has been suffering lately but is now finding support at the 100 day EMA. Monthly is holding at the golden ratio 0.618 fib level. Good long term hold here after its current retracement.
NYSE:TDLong
by HolleyIG
Upcoming $VSBGF Earnings - Price TargetNew company with a very bright future. VSBLTY Groupe Technologies Corp $VSBGF earnings report is expected on May 4th. The company has just begun to turn profits, signed numerous big name agreements with global companies, and continues to present a very bright future. Sensors & displays in retail sales environments, artificial intelligence, security... this is a sleeping giant. November 21 earnings resulted in >30% spike in the face of broader market downturn and macroeconomic headwinds pulling the company down. The more broad negative market sentiment presents a rare opportunity to continue to load up on shares prior to the next earnings report on 4 May. The stock is significantly undervalued with revenue projected to increase >45% this year PE of -6.7x, market PE is 44.5x & the broader market is 12.6x As a nascent company with a strong pipeline and implementations on track, the PB rating of 17.8x is just scratching the surface as it has just a 16% debt to equity ratio.
OTC:VSBGFLong
by R0MM3LL
Long shot tesla upHello, you can see tesla about to shoot up on earnings. This can be a very good trading opportunity. I am more then 50% sure it making shoulder head and shoulder upside down. And will go to new ATH after earnings, we are talking about 1300 or so. Please note that this might not happen due to very strange political issues in the world. I bought options with expiration at may 20 2022 with strike at 1300-1400. They about $150-300 each depends what suit your fancy. Sell half of them at 100% gain, keep rest for 400% gain. That's my plan :) Good luck everyone!
NASDAQ:TSLALong
by biggriz
No brainer, it's buying here, with such risk vs reward! 🏆Hi there, Yurii Domaranskyi here. Risk vs Reward = 1 to 12.43 ✨ It means if you risk here 100$ you may make 1243$ Not bad, huh? + Dividends 11.02% per year, which is mesmerazing. Advanced Flower Capital Gamma (AFC Gamma, NASDAQ AFCG) is a leading provider of institutional loans to high-quality cannabis companies nationwide in all aspects of production: cultivation, processing, and distribution. We offer loans and related facilities, generally secured by substantial assets such as real estate, licenses and cash flow. With years of combined lending expertise and real-estate experience, AFC Gamma’s principles are now focused on the exponential growth of the cannabis industry.
NASDAQ:AFCGLong
by realisticPaell55731
4
AAPL >30% Monthly Correction OverdueSince 2007, AAPL has held the same trendline as support (on log scale). In that same time period, AAPL has fallen 30-50% 6 times, and the LT support line has been tested 3 times. We are now ~40% above that trendline today. BUT APPLE IS SUCH A STRONG COMPANY?! Yeah, okay, but last time it was trading above a PE of 20x was back around 2007-2010. Clearly the valuation is reflecting the "SUCH A STRONG COMPANY" ****sentiment**** rather than a rational investor sentiment. Why has AAPL been spared from the 50% downturn that most other tech stocks have faced? If we were to take a >30% correction, we would get back down to the 20x PE value (on current financials), and frankly, we're about due for the first AAPL correction in a few years. I've made money on AAPL over the years. It's a great LT hold... I just think now is a prudent time to take some cash off the table and to prepare for the next buying spree, likely closer to the ~120 range where we had such support last year.
NASDAQ:AAPLShort
by HandsomeSloth