Netflix(US:NFLX) GF SECURITIES·2026-01-26 11:24Investment Rating - The report assigns a "Buy" rating for Netflix (NFLX) with a current price of $86.12 and a fair value of $100 [3]. Core Insights - Netflix has transitioned from a DVD rental service to a global streaming giant, achieving significant growth in membership and content production. By the end of 2025, Netflix is projected to have 325 million members, with two-thirds being international subscribers [6][8]. - The company has built competitive barriers through early market entry and substantial investments in content, totaling $155 billion from 2010 to 2025. This has led to a shift from licensing to producing original content, which now constitutes over 60% of its library [8][9]. - The report forecasts revenue growth of 13% and 12% for 2026 and 2027, respectively, with net profit growth of 21% and 17% for the same years. The estimated earnings per share (EPS) for 2026 is $3.07, with a price-to-earnings (P/E) ratio of 32x [2][8]. Financial Projections - Revenue (in million USD) is projected to grow from $39,001 in 2024 to $62,766 in 2028, with growth rates of 16% for 2024 and 2025, tapering to 10% by 2028 [2]. - EBITDA is expected to increase from $11,019 million in 2024 to $21,736 million in 2028, reflecting a strong operational performance [2]. - Net income is forecasted to rise from $8,712 million in 2024 to $17,692 million in 2028, indicating robust profitability [2]. Company Overview - Netflix's journey began in 1997, initially focusing on DVD rentals before pivoting to streaming in 2007. The company has since expanded globally, with significant milestones including the launch of original content and a focus on local production [8][9]. - The competitive landscape has evolved, with Netflix facing increased competition from platforms like Disney+. The company is adapting by diversifying revenue streams beyond subscriptions, including advertising and gaming [8][9].