Should you buy Netflix stock? (October 2023)

Netflix stock analysis. Ticker: $NFLX Join our newsletter: https://www.overlookedalpha.com In the US, Netflix had the most watched original TV series for 37 out of the first 38 weeks of the year. Suits proved to be a big hit and the company has more content in store such as the final season of The Crown and a new Squid game. The company is even rolling out physical destinations which it’s calling the Netflix House. And Netflix management has also bought back an impressive number of shares, about 3.5 billion dollars worth over the last year. However, it’s not all good news. Netflix’s revenue growth has been helped by the clamping down on password sharing within households. Once this rollout is completed, that boost to revenue will die down. Second, Netflix’s free cash flow was helped by a 1 billion dollar reduction in content spend, a direct result of the actor strikes going on in hollywood. Spendings should increase from 13 billion to 17 billion next year once the strikes are resolved. And that is going to have a huge impact on free cash flow. Meanwhile, data from Nielsen shows that Netflix’s percentage share of TV viewing in the US dropped by 4 percentage points with YouTube and Amazon Prime making strong headway. #netflixstock #investing #overlookedalpha