Is It A Good Time To Invest In Netflix?

  Is It A Good Time To Invest In Netflix? Investors, is this a good time to Invest in Netflix (NFLX)? looking for the answer to the question. The most important reason to ask this question is that we are approaching the summer season. Most people seem to prefer spending time outside rather than staying home watching Netflix. However, this poses only a short-term downside, says Jefferies analyst Andrew Uerkwitz, who says "timing is everything." "Free cash flow will allow NFLX to leverage the current momentum and fragmentation in the market to prepare the original content pump," Uerkwitz said and Netflix is ​​currently "a top-notch and must-have OTT service " added. Also, Uerkwitz stated that there are three important factors to consider when considering investing in Netflix.

Investors, is this a good time to Invest in Netflix (NFLX)? looking for the answer to the question.

- First, competition in the flow area becomes more fierce as new offers enter the market. However, Uerkwitz thinks the streaming giant should be the go-to when faced with a choice between other types of entertainment and subscriptions and Netflix. -Stating that the second factor is scale, the analyst thinks that having more than 200 million subscribers gives Netflix 2 great advantages. According to Uerkwitz, "IP is very likely to go viral and requires very little marketing cost to make it happen. Also, creating localized content becomes a misnomer because good content crosses borders. ” -- The third point to consider is the "possibility of other monetization." The analyst, who said that as growth slows down, "ancillary income streams" will be needed, he thinks Netflix may bring its original content to the cinema soon.According to Uerkwitz; NFLX is now in a position to self-fund an original content offering to rival the entire TV / Movie industry. As a result of the above reasons, Uerkwitz started streaming Netflix with a "Buy" rating and a price target of $ 620.    

Source:  www.tipranks.com

 

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