Netflix-

Better Streaming Stock

   Netflix- Better Streaming Stock Is the streaming giant a better overall investment right now? Netflix NFLX (NASDAQ) $583,85 -8,79 (-%1,48) is one of the best streaming media stocks in the market. Also, Roku is one of them. NFLX has the world's best video platform in terms of paid subscribers, while Roku is the market leader in streaming media devices in North America. Despite being an early investor from Roku, Netflix spearheaded the development of the streaming platform here, thanks to Roku founder Anthony Wood. But Wood later left Netflix and led Roku to develop its own set-top box, and the rest is history. Netflix is ​​taking advantage of the slow death of "linear TV" services like cable and satellite TV and the rise of on-demand streaming services. It launched its first streaming video platform in 2007, and its shares have skyrocketed 21,430% over the past 14 years. Roku also showed a huge increase in the value of its shares. However, both companies faced an increasing number of competitors. Netflix has had to deal with competition from Disney (NYSE:DIS) and other fast-growing streaming platforms heavily. Is this streaming stock still worth buying today? It is useful to examine their core businesses, growth rates and valuations to find out.

How fast is Netflix growing?

As it is known, Netflix derives almost all of its revenue from paid subscriptions. One of the reasons for the huge increase in its total revenue was due to the increase in its paid users due to bans during the pandemic. Nevertheless projects delayed throughout the crisis and reduced marketing expenses also caused Netflix to increase its operating margin from 12.9% in 2019 to 18.3% in 2020. It showed a slight slowdown after the pandemic, which led to its competitors.

Netflix- Better Streaming Stock

On the bright side, Netflix's operating margin still rose from 19.4% to 26.2% and net income rose 114% to $3.1 billion. Although it aims to keep its annual revenue growth at around 20%, analysts expect its revenue to increase only 19% this year and 15% next year.

The valuations and verdict

Netflix is ​​trading with 46x forward earnings and nine times this year's sales. The company is facing post-pandemic slowdowns, but Netflix is ​​currently a reasonably worthy investment. Although its rating appears to be under pressure due to competitive threats, the world's best paid video streaming platform will likely continue to lead once the pandemic is over.  

Source: The Motley Fool

 

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