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 21/08/25.
Price Performance
Growth Potential
- Very attractive TAM of 750m subscribers (excluding China) with management targeting 410m subscribers by 2030 (vs ~300m currently).
- Content flywheel with consistent investment (~$17bn/year) in global and local-language content driving engagement and reducing churn.
- New monetization levers including advertising tier (introduced 2022 open a multi-billion-dollar revenue opportunity) and password sharing crackdown (has successfully converted freeloaders into paying users, boosting revenue without large content cost increases).
- Optionality beyond streaming with gaming initiatives and IP licensing/merchandising helping deepen engagement and unlock incremental revenue.
- Improving financial strength with the company seeing operating margins expand from ~20% to mid-30s as scale improves, cashflow profile transition from negative to positive FCF and continued balance sheet deleveraging, provide stronger capital returns potential
Key Risks
- High valuation and trading multiples which are susceptible to de-rating should growth rates miss expectations.
- 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.
- Risk of diminishing returns due to high content costs (content amortization made up 53% of FY24 costs) as streaming wars require massive spending to maintain subscriber loyalty.
Subscribe to our newsletter
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.
About Ferrari NV Ferrari N.V., through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. The company offers sports, track, one-off, and road cars, as well as supercars. It also provides spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. In addition, the company operates Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain. Further, it provides direct or indirect finance and leasing services; range of financial and ancillary services; special financing arrangements; and operates franchised and owned Ferrari stores. The company was founded in 1947 and is headquartered in Maranello, Italy. Key Stats
With gold near record levels, discover what’s driving the rally and how it’s shaping global markets and investor behaviour.
About Amcor Plc Amcor plc, together with its subsidiaries, engages in the production and sale of packaging products in Europe, North America, Latin America, and the Asia Pacific. The company operates in two segments, Global Flexible Packaging Solutions and Global Rigid Packaging Solutions. The Global Flexible Packaging Solutions segment develops and supplies flexible packaging products, including polymer resin, aluminum, and fiber based flexible packaging products to the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Global Rigid Packaging Solutions segment manufactures rigid packaging containers, closures, dispensing and pharma devices, and related products for the food and beverage applications. The company sells its products through its direct sales force. The company was incorporated in 1926 and is headquartered in Zurich, Switzerland. Key Stats
Heightened US–China trade tensions trigger a USD 2 trillion market sell-off. Explore the market fallout and the implications for investors.
Explore ways to gaining real estate exposure via REITs, shares and ETFs without buying property.
A closer look at the AI boom: investor psychology, market behaviour, and lessons from past bubbles.
About Constellation Energy Corp Constellation Energy Corporation produces and sells energy products and services in the United States. It operates through five segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. The company offers electricity, natural gas, energy-related products, and sustainable solutions. It has approximately 31,676 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets. The company serves distribution utilities, municipalities, cooperatives, and commercial, industrial, public sector, and residential customers. The company was incorporated in 2021 and is headquartered in Baltimore, Maryland. Key Stats
About Cameco Corp Cameco Corporation provides uranium for the generation of electricity. It operates through three segments: Uranium, Fuel Services, and Westinghouse. The Uranium segment engages in the exploration for, mining, milling, purchase, and sale of uranium concentrate. The Fuel Services segment is involved in the refining, conversion, and fabrication of uranium concentrate, as well as purchase and sale of conversion services. The Westinghouse segment operates as a nuclear reactor technology original equipment manufacturer and a provider of products and services to commercial utilities and government agencies. It also provides outage and maintenance, engineering support, instrumentation and control equipment, and plant modification services, as well as components and parts to nuclear reactors. The company sells its uranium and fuel products and services to nuclear utilities in the Americas, Europe, and Asia. Cameco Corporation was incorporated in 1987 and is based in Saskatoon, Canada. Key Stats
About Innovative Industrial Properties Inc. Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Key Stats
The Federal Reserve delivers a 25-basis-point cut, aiming to balance slowing growth with stubborn inflation. What does it mean for equities across Australia and the US?
