Netflix's Falling Knife And Underwater Thesis Explored - Contrarian Buy Reiterated

Summary

• Netflix, Inc.'s decelerating growth profile, the missed M&A with WBD, and the increased streaming competition have pressured its share performance.
• This is, albeit, with the market leader still reporting robust engagement trends, growing revenues/margins, lower net debts, and higher ad monetization.
• The meltdown has triggered NFLX's cheap EV/EBITDA of 18.42x and 3Y PEG ratio of 0.94x, with an upward re-rating supporting a bull-case LTPT of $119.40.
• This is, albeit with volatility risks, including heavy insider selling, intense D2C competition, and uncertain materialization of trading floors amid macro headwinds.
• NFLX is rated a contrarian buy for patient investors seeking deep-value plays and potential rebound momentum prospects.