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Netflix Continues Its Bid for Warner Bros. Discovery

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Image Source: Netflix By Brian Nelson, CFA On January 20, Netflix (NFLX) reported fourth quarter results that came in better than expected on both the top and bottom lines. In the period, revenue increased 17.6% year-over-year, while the firm crossed the 325 million paid membership milestone. Operating income increased 30% year-over-year, with its operating margin increasing roughly 230 basis points. Net income came in at $2.4 billion versus $1.9 billion in the year-ago period and diluted earnings per share came in at $0.56 versus $0.43 in the year-ago period. Free cash flow was $1.9 billion in the quarter, up from $1.4 billion in last year’s period. The results were driven by membership growth, higher pricing, and increased ad revenue. Management … Read more

3 Undervalued Stocks to Consider Buying Now

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Dear readers:   With the markets retracing most of their recent drawdown, we’re taking a victory lap as we didn’t panic, nor should have you. We highlighted our wait-and-see approach amidst the worst of the pullback, and we expect the Magnificent 7 (large cap growth and big cap tech) to continue to propel the markets higher, as they have done.   We’ve been busy rolling valuation models as we finetune our assumptions for a great number of companies under coverage. While doing so, we came across three undervalued stocks that are also included in the simulated newsletter portfolios. We think they’re prime for highlight.   The three stocks are UnitedHealth Group (UNH), Nvidia (NVDA) and Alphabet (GOOG). We spend a lot of time on discounted cash-flow valuation, … Read more