Netflix Trade Call if Below Fair Value

17 days ago

"So total upside from here is 91% or about a 14% annual return. And in this case, if I want to double my money over the next 5 years buying Netflix, I would have to buy Netflix at about $87 per share. So my fair value hasn't really changed. I still believe $87 per share is fair for Netflix. I think $85 or under, it would start getting really interesting. It would start becoming what I would call a bargain. I still don't believe Netflix is a bargain. At 90, $91, $85, close to 85 or below, even 87, it starts to get interesting. Under 85 for me, it starts to get really, really interesting. And then you would have a ton of margin of safety. If the merger goes through, it's amazing. If it doesn't go through, Netflix will do well on its own. And that's my opinion on Netflix."

The speaker outlines a trade call for Netflix, emphasizing that its current fair value is around $87 per share. They indicate that if Netflix trades at $85 or lower, it becomes an attractive buy due to significant upside potential over the next 5 years, despite concerns over overvaluation and merger-related risks.

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