1 Artificial Intelligence (AI) Stock to Buy Hand Over Fist Right Now

Core Viewpoint - The article suggests that despite the hype surrounding AI, there are still strong investment opportunities in companies like Netflix, which has recently experienced a 20% pullback in its stock price [1][2]. Company Overview - Netflix is not typically associated with AI but utilizes proprietary data to enhance its streaming platform, making it relevant in the AI discussion [3][5]. - The company has over 301 million paid subscribers, indicating a significant market presence and potential for growth [8]. Business Strategy - Netflix's strategy includes leveraging data to improve user experience, which allows for price increases and subscriber growth [6][9]. - The company is expanding into live sports and mobile gaming, diversifying its offerings beyond traditional streaming [7][9]. Financial Performance - Netflix reported a 17% year-over-year revenue growth in the third quarter, with several growth levers available for continued double-digit growth [9]. - The stock trades at approximately 42 times full-year earnings estimates, which may seem high but is justified by consistent profit margin increases and projected earnings growth of 24.5% annually [12][13]. Market Position - The company views itself as competing not just with other streaming services but also with social media and gaming, reflecting a broader market strategy [7]. - Despite recent challenges, including a $619 million charge related to a tax dispute, management considers this a one-time issue that will not affect future earnings [10][12].