Topic: How To Invest

Q: Pat, what are your views on Netflix?

Article Excerpt

A: Netflix Inc., $348.00, symbol NFLX on Nasdaq (Shares outstanding: 444.0 million; Market cap: $158.0 billion; www.netflix.com), is the world’s leading video-streaming service, with 222 million paid subscribers worldwide. Netflix’s revenue has increased 154.1% over the last five years, from $11.69 billion in 2017 to $29.70 billion in 2021. Over those five years, its global paid memberships increased 100.5%, from 110.6 million in 2017 to 221.8 million at the end of 2021. That included a big 21.9% jump in 2020 as the pandemic forced more people to stay home. Over those five years, the company’s earnings grew by 816.0%, from $558.9 million, or $1.29 per share, in 2017 to $5.12 billion, or $11.55 a share, in 2021. In the quarter ended December 31, 2021, Netflix’s revenue rose 16.1%, to $7.71 billion from $6.64 billion a year earlier. The company earned $607.4 million, or $1.33 a share–12.0% higher than earnings of $542.2 million, or $1.19 a share, a year earlier. Netflix finished the quarter with…