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Does Netflix Stock have Long-Term Potential?

Netflix’s addressable market is set to grow from $68 billion in 2018 to $159 billion in 2024, while subscription services are projected to grow by $51 billion from 2018 to 2024, reaching a total of $87 billion.

Netflix currently serves 87% of the United States market, 50-70% of all developed countries and up to 20% of the developing world.

Prior to earnings, I covered the company’s stock price, its debt, and its 0.17% returns – or nearly 0% — over the past 12 months. I also addressed concerns about Netflix’s problems with free cash flow due to producing content for many geographic regions.

Although the company has reached saturation in the United States, as broadband coverage increases globally, and as 5G delivers faster speeds to developed countries, Netflix will be able to grow its already-dominant user base and reclaim their costs.

Read the full pre-earnings article on Forbes here.

As a follow-up, I also covered Netflix after Q4 2019 earnings. The company crushed overall subscriber numbers although domestic growth is slowing, as I had predicted.

Despite stiff competition from Apple TV+ and Disney+, the company reported 8.8 million new paid subscribers, compared with expectations of 7.9 million. In total, the company has 167 million in global paid subscriptions.

I break down the earnings report further in the full-length analysis.

On technicals, Netflix reclaimed its 50 day and 200 day simple moving averages, both of which can be treated as support. Knox Ridley, technical analyst on our premium research site, expects Netflix  to break $385 with high volume or to retest October lows of $250.

You can read the full post-earnings article on MarketWatch here.


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