RESOLVING THE LEDGER
This is one outlet's own report from CNBC — the article as it was filed. Other outlets are covering the same event; open the full story to compare every source side by side.
See the full story · 1 sourcesNetflix's stock price may have lost the plot, but its fundamental narrative remains intact. Trading at 18.9x forward earnings — down near its 2022 bear-market trough (<15x) — the stock has gotten cheaper while the underlying business has gotten better.
When Netflix stopped highlighting subscriber adds to focus on revenue, margins, and free cash flow, growth investors departed — and value investors haven't fully arrived because legacy media like Disney (<13x) looks cheaper on paper. However, Netflix is a far superior business:
Netflix, YTD Paying 18.9x for today's higher-margin, cash-generative Netflix is only four turns above the worst moment in its public history. That makes selling volatility far more attractive than buying shares outright.
With Netflix around $70 and 25 calendar days to August expiration:
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