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No no listen ilan it was my pleasure but i cannot do a fourth video in two weeks on tesla no i’ve done three videos in the last two weeks on tesla sticking up for you i can’t do another video i’ve got to talk about something else today you’re gonna fly a rocket up my ass fly rocket up your ass you whatever inmature prick’d netflix talk is flying higher today basically
On the back of goldman sachs saying that you need to buy netflix talk asap guys here today netflix stock is up around 10 dollars a share of as of taking the screen shot up well over three percent over $300 a share once again and goldman sachs has come out in they’re very bullish so we’re gonna kind of look at all the things they’re saying and then kind of just
Dissect them and see if this really makes sense to buy netflix here and there okay so basically they have come out and advisor clients to buy netflix into the earnings okay they’re gonna be reporting earnings here very soon the firm has raised the price target to $360 from three hundred and fifteen dollars for netflix shares and reaffirmed its buy rating for the
Video streaming internet giant goldman sachs also predicted netflix to post subscriber gains above expectations this year we continue to believe that netflix is likely to report 1q results above consensus expectations on the back of a strong content slate newer distribution partners in the initial impact of marketing investments they also said the analyst predicts
That netflix will add 1.7 million domestic in 5.6 million international subscribers in the first quarter verses guidance of 1.5 million and 4.9 million respectively he also forecasts the company will gain 21 point eight million international subscribers this year versus nineteen point six which wall street is expecting beyond the quarter we continue to believe
Long-term subscriber growth and profitability will exceed current consensus expectations as netflix realizes the global scale benefits that come from the subscriber based distribution network in content library and stanley and jpmorgan also raise their price targets for netflix on tuesday so a bunch of firms have come out a bunch of huge firms have come out here
And kind of raised the price targets on netflix now this analyst for goldman sachs he is not only bullish in the short term he’s also bullish in the long term for netflix okay so he sees them beating numbers here in the short term but he also sees a lot of you know long term benefits with the company as they you know scale up more and more get that profitability
Up in those kind of things now as you guys know i don’t play companies for the short term i’m usually looking at several years out at least two years out but usually like three years out four years out when i kind of been viewing a company i don’t play these short-term earnings well if you were playing short-term earnings there was a few things you kind of want to
Look at right so this analyst expects the company to beat on numbers right it could netflix is a company that at least on the eps side they don’t be very often if you look here there’s only one quarter of the past four quarters there’s only one quarter that they beat on earnings okay only one quarter that they’d actually be on the eps number right and that was
Last march okay other than that you can look at the june quarter they basically just met expectations they actually missed expectations in the september quarter and then the december quarter they basically just meet expectations okay then something else i looked at like to look at is eps trends okay so eps trend it is up for netflix right so analysts have up to
Their expectations for eps so if you were just looking out from eps perspective on netflix right there’s a company that’s only out of the last four quarters this company is only beat on eps one time okay now as when it comes to netflix a lot more people pay attention more to how many subscribers they add usually eps is kind of like a secondary most companies eps
Is a most important thing right netflix case eps is kind of like the second or third most important thing really what people are kind of paying attention to is the subscriber numbers you know what are those come in net internationally and domestically then they kind of worry about revenue and eps after that okay but needless to say aps is still an important thing
Even if your your netflix because this is a stage in the game where they respect – they get much more profitable it’s a company that of the last four quarters only beat one time and analysts expectations have gotten higher usually you want a situation where analysts expectations have come down so that it’s much easier to beat right then the analyst i’ve come out
And didn’t even more bullish which is gonna make it even harder for them to beat numbers right so a company you don’t need that and that consistently beats is a company like amazon right if you look at amazon over the past four quarters they’ve beat on eps three of the last four quarters that’s phenomenal they beat in the march quarter by 35% they missed in the
June quarter by 71% they killed in the september quarter by 1600 percent right and then the december quarter they beat by almost 17 percent there right and then if you look at amazon on the eps trend analyst had at 90 days ago eps for this quarter around a dollar seventy five now expecting around a dollar twenty-five for this most current quarter that’s usually
A situation where you know i would be more but in once again i don’t play companies for short term anymore it’s just it’s too much gambling involves too much speculation you you even though you can maybe you know guess that a company is gonna you know produce great earnings sometimes it doesn’t even mean the stocks and their law sometimes the stocks go down because
It already had a big run-up there’s a lot of different factors maybe you know wall street just pays attention on one metric that you never thought of or really cared about and that metric has off or not expected you know it’s just so much it goes into a guy’s guidance and whatnot but if i was to play a company for earnings i usually would want to play a company that
Had lower eps trends so analysts weren’t expecting as much rather than they kept raising them up and make it harder and harder for that company beat and usually you want to be in a company if you’re playing short term that consistently beats numbers it’s like well would you rather be in a company that misses numbers more often or a company that makes numbers more
Often obviously the company that makes numbers more often right netflix you know a lot of people always ask me why don’t you buy netflix and whatnot this is a company guys that has a trailing p/e of 246 on it a 4p of 72 it’s gonna take them several several years just to get to a place where they can be at a normal you know p/e ratio right that’s assuming the stock
Was not to go up at all i mean obviously the stock continues to go up it’s gonna you know you continue to push that p/e obviously you know over the future years it should come down but it depends on how much the stock goes up right so when i look at netflix a72 forward p/e in this company that’s that’s too much guys i cannot pay that paper price i don’t care you
Know what type of numbers they got they’re gonna have a lot of competition coming in the space over the coming years as more and more players come in so you’re gonna have a feel that’s getting more competitive are they in the lead absolutely there’s no question they’re in the lead of streaming video okay there’s no question about that and they should continue to
Be in that lead but at a 72 for p in a very competitive space a very costly space that you know a lot of companies like disney’s and these type of companies have a lot of money to buy programming and then do some exclusive things hbo a lot of these different you know platforms and whatnot i’m just saying it’s too rich for me ok if it was a you know if it was a 30
If it was a 35 i could pay that for netflix but as 72 for pe it’s too much for me guys there’s too much that’s why i can’t buy netflix personally it’s just you know it’s a very competitive space that’s gonna get more competitive and you’re at a forward p of 72 you know even though the leader there i love that but 70 i’m not paying a 72 ford pe on care what type
Of growth you got for a company so anyways i hope you guys enjoyed this let me know your opinion on netflix are you a buyer netflix or to use someone that watches the stock you have you owned in the past and sold off i’ll but just love to hear your guy’s opinion as always anyways thank you so much for watching guys and have a great day
Transcribed from video
Goldman Sachs says "BUY NETFLIX NOW!!!" By Financial Education
