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Netflix - AI Stock Analysis
Analysis generated September 16, 2025
Netflix, Inc. is a leading global streaming entertainment service provider with over 230 million paid memberships in over 190 countries. It offers TV series, documentaries, feature films, and mobile games across a wide variety of genres and languages. Known for its original content, such as disruptive series like "Stranger Things" and movies like "The Irishman", Netflix continues to dominate the streaming market. It operates on a subscription-based model, categorizing its services into three tiers: Basic, Standard, and Premium.
Fundamental Analysis
Revenue: Netflix's revenue for the last quarter was $11.1 billion. This is an increase of 5.09% compared to the quarter before it, indicating sequential growth. Compared to the same quarter last year, revenue increased by 15.90%, suggesting positive year-over-year growth. Increasing revenue is a crucial indicator of the company's ability to attract and retain customers.
Net Income: The net income for the last quarter stood at $3.13 billion. This is an 8.13% increase compared to the previous quarter and a significant 45.55% increase compared to the same quarter last year. The exponential growth in net income underscores Netflix's improving profitability.
EBITDA: Netflix reported an EBITDA of $7.73 billion for the last quarter, up by 5.83% sequentially and 18.27% year-over-year. This steady growth in EBITDA confirms the company's solid operational performance.
P/E Ratio: The current Price-to-Earnings (P/E) ratio for Netflix is 50.77. While this is relatively high, potentially indicating overvaluation, it can also reflect investor expectations of strong future earnings growth.
Insider Activity: There have been several insider stock sales in recent months, potentially a bearish signal as it can indicate that insiders believe the stock price is currently high.
Technical Analysis
Current Stock Price: The current stock price is $1,200.51, a decrease of 3.10% compared to a month ago, which may be concerning for short-term investors. However, the stock has increased by 69.83% compared to a year ago, indicating a strong long-term growth trend.
Moving Averages: The current 10-day Simple Moving Average (SMA10) stands at $1,217.11, slightly lower than the previous SMA10 of $1,221.44. This suggests a potential downward trend in price movement.
Relative Strength Index (RSI): The current RSI is 49.5, which indicates a neutral condition. An RSI below 30 is typically considered oversold, above 70 is overbought, so at 49.5, Netflix is neither, suggesting stable, non-excessive trading behavior.
Alternative Data Analysis
Job Postings and Employee Sentiment: According to data from leading job boards, Netflix has 539 open positions, a stable number over the past few months, indicative of a stable employment environment. Employee sentiment is high, with 81% of employees having a positive outlook. This is a positive sign reflecting a motivated and satisfied workforce.
Customer Acquisition: Netflix's website attracts an estimated 1.46 billion visitors monthly, with stable numbers indicating steady customer interest. Furthermore, the mobile apps have around 230,000 daily downloads, with a 7% increase in recent months, suggesting growing user engagement.
Customer Engagement: Netflix’s social media presence is robust, with 38 million Instagram followers and 24 million Twitter followers, each growing by 3% and 4% respectively over the last few months. This indicates increasing consumer interest and engagement with Netflix.
AI Score: According to AltIndex’s AI analysis, Netflix has an AI score of 59, which signals a "Hold". This suggests a balanced outlook, neither overly pessimistic nor excessively optimistic.
Conclusion and Recommendation
While Netflix exhibits strong financial performance with consistent revenue and net income growth, the high P/E ratio and insider selling are cautionary indicators. Technically, the slight decrease in stock price and SMA10 points to short-term volatility, though long-term trends remain favorable. Alternative data supports an optimistic view, with stable job postings, high employee sentiment, and growing customer engagement.
Based on this comprehensive analysis, Netflix stock seems to present a moderate risk/reward profile. Investors may consider holding their position while closely monitoring both fundamental performance and market conditions.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
