A Cardi B-styled bullish case for Netflix arguing its quality metrics and compressed valuation make it attractive.
NFLX — LONG The author argues Netflix is a high-quality business with a 40.5% ROIC and a very clean balance sheet at 0.47x Debt/EBITDA. The stock has fallen 45% and its multiple compressed from 56x to 25x earnings while the company is still growing its money by 47% a year, creating a valuation disconnect. The author frames this as buying A-list quality at clearance prices with long-term cash flow and growth intact.
The price is down 45%, but the company is still growing its money by 47% a year? DO THE MATH. The fundamentals are still Bardi Bullish, but the price is on the clearance rack.