![]() April 2021: Inflation rates cross 4% and increase rapidly.Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply.2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods producers were unable to match up.Will Netflix’s Advertising Strategy Move The Needle For The Stock?.With Ad Business Off To A Slow Start, What’s Next For Netflix Stock?.What To Expect From Netflix’s Q4 Results?.Netflix Q4 Subscriber Numbers Were Strong, What’s Next For The Stock?.What To Expect From Netflix’s Q1 Earnings?.With Growth Slowing, Is Netflix Stock Still A Buy?.Our detailed analysis of Netflix upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022 and compares these trends to the stock’s performance during the 2008 recession. economy were to go into recession, with consumer spending cooling. Netflix’s business may see an adverse impact if the U.S. This is because the recent uncertainty in the financial sector has made investors concerned about a potential recession. While it’s possible that the stock may recover to those levels, we presently estimate Netflix valuation to be around $363 per share, about 9% below the current market price. Returning to the pre-inflation shock level means that Netflix stock will have to gain about 69% if the stock recovers from $409 currently to its pre-shock highs of $692. Netflix’s move to launch an ad-supported plan and its move to cut down on password sharing also appears to have resonated with investors. In recent quarters, Netflix has benefited from stronger than expected per subscriber revenues, which have been driven by price increases. In comparison, the S&P 500 gained about 13% during this period. The stock has gained about 144% from these levels. Netflix stock was trading at a low of about $167 in mid-June 2022, just before the Fed started increasing rates. The stock could have considerable potential for gains if its recovers to these levels. Netflix stock (NASDAQ:NFLX) currently trades at $409 per share, about 41% below its pre-inflation shock high of about $692 seen on November 17, 2021. ![]()
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