Parkev Tatevosian, CFA on $NFLX (Nov 2, 2026)
NFLX is significantly undervalued, with the speaker's fair value at 120 versus a market price of roughly 62; it is his largest position and he will keep adding while the stock stays around these levels. Falling engagement and negative sentiment are conceded, but margins above 30% and rising plus cable-to-streaming migration should offset some challenges and grow cash flow and profitability for many more years.
Jump to any passage
The next stock I'm going to highlight as one of the top nine stocks you can buy right now is Netflix. I calculated the fair value of the stock at 120, while the current market price is roughly half that at 62.
It is significantly undervalued in my opinion, and Netflix is the largest position in my portfolio. I am interested in adding more Netflix shares to my portfolio.
The reason Netflix is cheap is different from the reason why the first few companies were cheap, which is the concern surrounding consumer behavior. People are spending less time watching content on Netflix, and this engagement rate figure is worrying investors.
Investor sentiment towards the company has turned negative, and it is doubtful what catalyst will drive Netflix's stock up.
However, as long as the stock stays around these levels, I will continue to add more Netflix to my portfolio. The company has over a decade of experience creating content that people love to watch .
Moreover, she knows how to do it in an economical way. It achieves operating profit margins exceeding 30% and increasing. In addition, millions of people each year cancel their cable subscriptions and switch to streaming content instead.
Therefore, I believe these positive factors will offset some of the challenges resulting from changing consumer behavior, and will drive Netflix's cash flow and profitability to grow for many more years.
What this channel has said about $NFLX
Parkev Tatevosian, CFA has 12 calls on this stock; only the adjacent ones are shown.