Netflix suffered a brutal selloff, dropping its forward multiples from a dizzying 40x down to a modest 18 times 2027 earnings estimates.
This is an incredibly rare value opportunity for Netflix.
Deutsche Bank highlights that Netflix is uniquely positioned to use AI. This could result in optimising its high margin advertising engine.
As the famous John Templeton likes to say :
"The time of maximum pessimism is the best time to buy".
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- henshengqiΒ·10-06 20:02TOP18x on 2027 earnings still feels conservative. They are barely pricing the gaming and live expansion, and AI only makes the ad engine more efficient2Report
- cozyziΒ·10-06 20:02TOP18x sounds cheap only if the ad AI uplift drops straight to cash flow. Extra data and compute can eat that margin fast lol1Report
- icycrystalΒ·10-07 07:06TOPthanks for sharing1Report