Netflix: NFLX - China Untapped Netflix Offers Risk Capital Upside While Maintaining A High Floor

2025-04-26 09:22:14 ET Summary Netflix is a buy due to its high upside potential and relatively low downside, despite market saturation and rising costs. Hypothetical access to the Chinese market could significantly boost user growth, but Netflix remains strong even without it. Netflix's profitability and recent subscriber growth were solid, with AI developments potentially enhancing future performance. Despite a high P/E ratio, Netflix's stability and potential make it a solid long-term investment. I must admit, (NYSE: NFLX ) has surprised me over the years. While I've always liked the company in and of itself, I generally believed NFLX's value should be more in line with movie studios like Disney rather than high-profile, established tech stocks (e.g. GOOG , AMZN ). As the company shifted into making more of its own content, I figured business costs would rise while revenue and user growth would slow. Netflix so far has proven me wrong, and I currently rate them a buy, although I do still have some long-term doubts (market saturation, rising costs, etc.) My Investment Thesis Looking for a tech stock with a high upside but (relatively) low downside? That might sound too good to be true, but I believe that Netflix fits the bill to some extent. Let's explore why.... Read the full article on Seeking Alpha For further details see: China Untapped, Netflix Offers Risk Capital Upside While Maintaining A High Floor