Netflix Stock Trades at Its Cheapest Valuation Since 2022 Bear Market

Earnings

โดย The Motley Fool·Read original

Summary · why it matters

Netflix stock is trading at 24 times earnings and 23 times forward earnings, its cheapest valuation since the 2022 bear market, presenting a buying opportunity ahead of second-quarter earnings on July 16. The company reported first-quarter revenue of $12.2 billion, up 16.2% year over year, and earnings per share of $1.23, an 86% increase boosted by a $2.8 billion termination fee from Warner Bros. Discovery. Netflix generated $5 billion in free cash flow in the first quarter and expects $12.5 billion by the end of 2026. Despite a 22% year-to-date decline in the stock, 73% of Wall Street analysts rate it a buy with a median price target of $115 per share, implying 56% upside.