Stock Spotlight: Netflix Inc (NASDAQ:NFLX)
This week's Stock Spotlight is NASDAQ-listed Netflix Inc.
About Netflix Inc.
Netflix, Inc. provides entertainment services. The company offers television (TV) series, documentaries, feature films, and games across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. The company operates approximately in 190 countries. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.
Source: Yahoo Finance
Key Stats
Key Stats
Source: Yahoo Finance. Data as of 28/07/25.
Price Performance

Growth Potential
- Very attractive TAM
- Significant existing user base, which is continuing to grow strongly, particularly in the international market.
- Competitive positioning globally, as a market leader not only in the industry but starting to carve a leading position against cable television.
- International expansion opportunities across emerging markets as well as solidified position in established markets (US).
- Exclusive contracts with the best producers including Sony Entertainment, Warner Bros and Universal Pictures.
- Growing demand for Netflix exclusives.
- Flexibility to pick up content driven away by TV to customise viewing according to user tastes and preferences.
Key Risks
- High valuation and trading multiples which are susceptible to de-rating should growth rates miss expectations.
- Escalation of intense competition and streaming wars, especially with Walt Disney (DIS) who own a strong content portfolio covering Disney, Pixar, Marvel, Star Wars, and National Geographic brands and sports streaming service ESPN+. DIS also holds a majority stake in Hulu, which is an online streaming service provider.
- Execution risks around content creation versus content distribution.
- Increasing competition based on price or exclusive content contracts.
- Investment into original content creation fails to live up to the success of exclusive contract deals of existing content.
- Bandwidth issues in emerging economies posing difficulties in penetrating these markets.
- The long-term and fixed cost nature of content commitments hinder NFLX’s operating flexibility.
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Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.




