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My view about Netflix
22 Apr 2020 (93 views)

The price of Netflix has increased sharply during the past few months. The lockdown in many countries has led many people to subscribe to Netflix to pass the time. Netflix added 15.44 net new subscribers during the 1Q 2020, more than analysts expected.

Will I invest in Netflix?

I would not. Here are my reasons:

a) It has a PE ratio of 105 times and does not pay any dividend
b) The current price of $433 is the highest over the past 5 years
c) I expect the subscribers to drop when the lockdown is over.
d) Many large tech or movie companies will be able to bring out competitive products easily.



My view about Netflix
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The price of Netflix has increased sharply during the past few months. The lockdown in many countries has led many people to subscribe to Netflix to pass the time. Netflix added 15.44 net new subscribers during the 1Q 2020, more than analysts expected.

Will I invest in Netflix?

I would not. Here are my reasons:

a) It has a PE ratio of 105 times and does not pay any dividend
b) The current price of $433 is the highest over the past 5 years
c) I expect the subscribers to drop when the lockdown is over.
d) Many large tech or movie companies will be able to bring out competitive products easily.