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Netflix - AI Stock Analysis

Analysis generated April 15, 2025

Netflix, Inc. (NASDAQ: NFLX) is one of the world's leading entertainment services, providing streaming content to global audiences. The company offers a wide array of TV series, documentaries, and feature films across various genres and languages. Netflix operates across multiple regions and has diversified its offerings to include original programming, further solidifying its foothold in the entertainment industry.

Fundamental Analysis

Revenue for the last quarter stands at $10.2 billion, marking a 4.29% increase compared to the previous quarter. This indicates positive quarter-over-quarter growth. Year-over-year, revenue has increased by a substantial 16.00%, highlighting Netflix's ability to adapt and grow sustainably.

Net income for the last quarter was $1.87 billion. Although this represents a decrease of 20.94% compared to the previous quarter, it shows an impressive 99.25% year-over-year increase, reflecting strong profitability growth on an annual basis, albeit with some recent quarter fluctuations.

EBITDA for the last quarter was $6.18 billion, representing a decrease of 7.28% quarter-over-quarter. However, the year-over-year growth of 15.85% indicates strong operational performance over the longer term, despite quarterly variability.

The current P/E ratio of 46.28 may be considered high. This suggests potential overvaluation, presenting a bearish outlook on valuation grounds. Insider selling in recent months can also be taken as a bearish signal, indicating reduced confidence among company executives.

Technical Analysis

Today's stock price is $981.22, which marks a 6.89% increase from a month ago, indicating a positive short-term trend. Year-over-year, the stock has surged by 58.90%, highlighting a robust long-term bullish trend.

The current Simple Moving Average (SMA10) is $912.81, higher than the previous SMA10 of $900.27, illustrating an upward price movement trend. The Relative Strength Index (RSI) is 24.8, indicating a potentially oversold and bullish condition in the market.

Alternative Data Analysis

Netflix has 489 open positions, up by 27% in recent months, indicating that the company is in an expansion phase, which is a healthy sign. However, employee sentiment is neutral, suggesting mixed internal perspectives about the company's future.

Customer acquisition data shows Netflix's website has about 1.92 billion visitors, but this number has decreased by 18% in recent months, indicating a potential decline in customer interest. The estimated 190,000 daily mobile app downloads have also decreased by 36%, which is another worrisome trend regarding customer acquisition.

In terms of customer engagement, Netflix has 36 million followers on Instagram and 23 million on Twitter, with no significant changes over the last couple of months. According to AltIndex’s AI, which combines fundamental, technical, and alternative data analysis, Netflix has a score of 48, suggesting a hold signal.

Conclusion and Recommendation

In conclusion, Netflix presents a mixed bag of indicators. The company's revenue and profitability show strong year-over-year growth, while recent quarters exhibit some volatility. The technical analysis is overall bullish, with an uptrend indicated by increased stock price and SMA10 values. However, alternative data hints at potential challenges, including decreasing customer acquisition metrics. The high P/E ratio and insider selling also add some bearish signals.

Given the balance of positive and negative indicators, a hold recommendation appears prudent for Netflix. This allows investors to benefit from its strong market position and recent growth trends while waiting for more clarity on customer acquisition and internal sentiment.

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.