Have you ever wondered what happens when a growth stock, well, doesn't grow anymore?
Netflix is, at the moment, just a few bucks (I mean billions lol) below the 100 B dollar market cap.
kinda big uh? it's like 100 unicorn start-ups together :D
Anyway, let's get to the point.
In the past, the company now considered OLD for us, the younger, simply exists, and they just work (you know, revenue, FCF etc, all cool stuff)
they're not considered growth, ANYMORE, cuz in the past they must have been considered so right? everyone grows, then you just "keep what you have" or fight for it when you cant grow bigger.
Now, from the internet, it is kinda known (in my studies at least) that a PE of 13-17 makes a company a good buy, but it's not undervalued yet.
Well, it is also true that a PE of 30 for a growth stock is considered a good ratio as well, cuz you know, that's a GROWTH stock.
Ah almost forgot, when there are not a lot of numbers or a lot of past years to analyse, the PE can go well about 30 (remember tesla? XD)
So, the point is: Netflix went from PE>100 in the past years, then it fell to PE = 38 after Q4 2021 and NOW after Q1 2022 has fallen to PE = 19
Does it recall something to you?
My idea? this "thing" just went from "hypergrowth stock" 2 years ago (ofc covid helped, maybe its not a big pharma conspiracy but a Netflix one LOL), to a "simple growth" 1 quarter ago, and now its gone to a "value" stock.
Before I end the analysis, a reminder: at the moment, Netflix has a PE of 19, well above the >13 expected for a value stock to be at a good price, which means the stock should fall another 30% AND, well, what a lucky coincidence another fall of 30% would bring the price to the MA200 of the MONTHLY chart.
Trade safe, and remember that wall street uses Algorithms, faster and better than you for trading purpouses.
Let me know in the comment if you have a DIFFERENT opinion, if you agree with me simply leave a like ;)
Netflix is, at the moment, just a few bucks (I mean billions lol) below the 100 B dollar market cap.
kinda big uh? it's like 100 unicorn start-ups together :D
Anyway, let's get to the point.
In the past, the company now considered OLD for us, the younger, simply exists, and they just work (you know, revenue, FCF etc, all cool stuff)
they're not considered growth, ANYMORE, cuz in the past they must have been considered so right? everyone grows, then you just "keep what you have" or fight for it when you cant grow bigger.
Now, from the internet, it is kinda known (in my studies at least) that a PE of 13-17 makes a company a good buy, but it's not undervalued yet.
Well, it is also true that a PE of 30 for a growth stock is considered a good ratio as well, cuz you know, that's a GROWTH stock.
Ah almost forgot, when there are not a lot of numbers or a lot of past years to analyse, the PE can go well about 30 (remember tesla? XD)
So, the point is: Netflix went from PE>100 in the past years, then it fell to PE = 38 after Q4 2021 and NOW after Q1 2022 has fallen to PE = 19
Does it recall something to you?
My idea? this "thing" just went from "hypergrowth stock" 2 years ago (ofc covid helped, maybe its not a big pharma conspiracy but a Netflix one LOL), to a "simple growth" 1 quarter ago, and now its gone to a "value" stock.
Before I end the analysis, a reminder: at the moment, Netflix has a PE of 19, well above the >13 expected for a value stock to be at a good price, which means the stock should fall another 30% AND, well, what a lucky coincidence another fall of 30% would bring the price to the MA200 of the MONTHLY chart.
Trade safe, and remember that wall street uses Algorithms, faster and better than you for trading purpouses.
Let me know in the comment if you have a DIFFERENT opinion, if you agree with me simply leave a like ;)
Comment:
well..
