Accumulation Phase Opportunity in Netflix

17 days ago

Mark Roussin, CPA

"And that's going to lead us to stock number three, which is going to be Netflix. And when it comes to Netflix, this is a company that used to be growth at any cost, but now we're starting to see valuations come down as they start to generate more in revenues, more in earnings, and more in free cash flow. And people are starting to see this company's true potential. Not only do they continue to operate at a very efficient level, and we continue to see gains across the board, however, the stock price has come down of late. That's opportunities for us long-term investors. That's what I like to call the accumulation phase."

Netflix is portrayed as transitioning from a high growth, expensive stock to a more attractive investment with improving fundamentals. The speaker views the current lower stock price—due in part to recent acquisition impacts—as an opportunity for long-term accumulation.

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