Netflix Stock Predictions: Strong International Subscriber Growth Is Why Netflix Is A Buy

NFLX Stock Predictions

Summary:

As one of the famous FANG stocks, Netflix enjoys a stratospheric valuation when compared to other technology tickers.

Like Amazon and Facebook, Netflix is a growth-driven company. In spite of stiff competition, FANG stocks managed to establish themselves as long-term leaders in their chosen line of business.

Unlike Amazon though, Netflix has made a successful global expansion. Its international subscriber count is now larger than in the U.S.

This is a very strong reason to stay or go long NFLX. International expansion will keep this company’s strong growth momentum.

NFLX has positive near-term and long-term algorithmic forecasts from I Know First.

Almost two months ago, I made a buy rating for Netflix (NFLX). The stock dipped and lingered below its May price levels during June and most of July. It never bothered me because I know I’m right with my buy recommendation. Last week, NFLX shot up high enough to deliver a +19.75% return on my May 25 rating for NFLX.

Predicting Netflix’s stock movement is so easy. More often than not, NFLX will shoot up in price every time the company reports a notable growth in its population of subscribers. Netflix’s shares buy rating last week after it reported better-than-expected number of new subscribers.

(Source: Google Finance)

Yes, sir. As a privileged member of the famous FANG club, Netflix is treated like a royalty by the investing community. It doesn’t matter much to retail or institutional investors if Netflix delivers lower-than-expected quarterly EPS and revenue numbers. NFLX will likely always enjoy lofty valuation of 230x P/E as long as it can show quarterly increases in its subscribers.

The Strong Reason To Go Long NFLX

The five-year +1,512.82% performance of NLFX is of course 100% due to its massive growth in number of subscribers. The Premium chart below from Statista is not updated yet because it ended in Q1 2017. However, the beautiful uptrend growth in subscribers illustrates clearly why NFLX enjoys stratospheric valuation.