Netflix Stock Forecast: Netflix Is Still A Good Value: An Algorithmic Analysis (NFLX)

Netflix Stock Forecast: Summary

  • Netflix Stock Forecast: Netflix has been the top performing stock since the beginning of the year, climbing over 66%.Netflix Stock Forecast
  • Some have argued that the company’s costs for original content and international expansion are too high, but all that matters right now is subscriber growth.
  • The television market will be set up in the future to allow streaming services like Netflix, with quality original content and a large number of potential subscribers.
  • The I Know First algorithm is bullish on Netflix for both the three-month and one-year time horizons.

Algorithmic Analysis

The figure shown in the Seeking Alpha article includes the three-month and one-year forecasts for Netflix from May 6th, 2015. In both forecasts, the company has a strong positive signal, indicating the algorithm is bullish for the stock. The algorithmic analysis is in agreement with the bullish fundamental outlook of the company. While profitability will continue to be underwhelming for the next couple of years, subscriber growth will cause the stock price to continue to climb, especially as momentum continues to build. When the international expansion is completed, the company will be in perfect position to grow profits in a new television market more suited for its business model. Netflix executives learned from their mistakes when it caused the stock price to crash in 2011 and will avoid upsetting consumers. The stock price will continue to soar, and is still a good value even with how much it has climbed already this year.

Read The Full Article

I Know First Research is the analytic branch of I Know First, a financial start up company that specializes in quantitatively predicting the stock market.