Dow Jones Index is the Dow Jones’ nickname for the financial market index. It tracks price changes and other economic indicators. As far as I understand, Netflix is tied to the price of DVDs. Since Netflix is a high-tech company, it follows the trends like any other tech stock.
One good thing about investing in stocks like Netflix, Microsoft, Apple, etc. is that their profits are not tied to the stock price. As long as the company makes profits, its stock price will stay the same. This is why I personally like Netflix stock.
There are always concerns that a company like Netflix, which operates in two different markets, will face subscriber loss. It would be unfortunate if this was the end result of Netflix’s business model. But the reality is that there are some things we can’t control. The positive news is that Netflix doesn’t have the subscriber base to really worry about.
The second reason Netflix doesn’t seem to be worried about the subscriber count is because they are focusing on making great movies and original programming. While the cost to produce a movie or show is higher than traditional television programming fees, they have managed to reduce the costs of production. Because they’re looking at making original programming instead of popular movies, they can put whatever amount of money they want into the production costs. This is one of the reasons I believe Netflix is set to have one of the best revenue streams of all time.
Here’s one more reason Netflix will experience strong gains. Netflix has an extremely large cash flow. Their valuation has risen very significantly due to the stock price increasing. When you add the fact that they’ve had very positive earnings in the past year, and their stock price has more than quintupled, you have a company that has a lot of potential. If you’re looking for a stock with significant growth potential, I would highly recommend this Netflix stock.
Netflix’s ability to leverage its massive streaming services to boost profit is another reason why I believe the stock is undervalued. There are many companies that offer similar products and streaming services to Netflix. But because Netflix has the ability to deliver a steady stream of high quality movies and shows to millions of subscribers, they are able to offer lower prices to its customers.
Netflix’s massive subscription numbers also work to its favor. While there are some other factors like availability and competition when it comes to cable TV, the subscriber numbers don’t seem to be dwindling. When you factor in that there are literally millions of people who use Netflix on a monthly basis, you can see that the financial benefits are tremendous. If you’re still not convinced that Netflix is priced appropriately, I’d like to provide you with a bit of historical context.
Netflix’s stock price has more than quadrupled since it first went public. During the same time period, Apple has taken a hit on the iPhone and its stock price as well. So if you’re looking for a stock that’s been increasing in price, I’d say you’re looking at a stellar combination of financial performance, great business management, an unparalleled distribution system, and an unlimited source of entertainment. If you’re still not convinced that Netflix is priced appropriately, I’d like to introduce you to someone who might be.
Netflix’s business model is based on its two main partners, namely Amazon and Hulu. Both of these companies offer original live programming for their millions of subscribers. In essence, they sell movies and television series, sporting events, documentaries, concerts, and everything else you can think of. The incredible amount of content on both of these subscription services gives Netflix an unparalleled opportunity to capitalize on the ever-increasing global scale of Internet video consumption.
The other interesting aspect of Netflix’s business model is the pay-per-subscribers, or PPPS, model. Basically, subscribers purchase a membership through either Amazon or Hulu and then pay a small one-time fee each month to Netflix. The advantage of this model is that subscribers have a captive audience. They only have to pay for the movies they want to watch, and Netflix makes money each time one of their customers streams a movie from Netflix. So while they are paying less per subscriber than their DVD competitors, they are gaining an enormous captive audience with a lower cost to deliver this content to their members.
The bottom line is that Netflix has built a solid business model based on strong consumer demand and strong international partnerships. As long as they continue to offer new movies on an ongoing basis, and continue to aggressively pursue digital distribution deals with popular international providers like Hulu and Amazon, the stock price will continue to perform well. In the near future, it looks very likely that the stock price will make large jumps. If you have been holding or investing in Netflix