Netflix stock valuation commentary by Crystal Hsu dated 13/8/2018. The operating income and international streaming revenue for Netflix have not met consensus expectations. While revenue, operating profit, and net profit continue to grow, the sharp fall in stock price was due to overestimation. The commentary recommends holding Netflix stock and waiting another week for a potential buying opportunity, as the company still has a high growth rate and increasing paid membership.

1. Netflix stock valuation
Comment by : Crystal Hsu 13/8/2018

2. Fundamental Analysis - Consensus

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Operating income vs Consensus
Operating income Consensus
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Domestic Paid Membership vs Consensus
Domestic Paid Membership Consensus
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International Streaming Revenue vs Consensus
International Streaming Revenue Consensus
The operating income and the
streaming revenue cannot beat
the consensus.

4. Fundamental Analysis - Debt

5. Technical Analysis

6. Comment on valuation

7. Netflix still has high growth rate
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Revenue Operating profit Net pofit

8. Call on Netflix
• Hold NFLX because there may be a rebound
• Wait for another week seeking for buying opportunity
• The sharp fall is because of the over estimation, however Netflix still
has high growth rate and growing paid membership