Posts

Netflix (NFLX) is Still a Buy Today Irrespective of Whether They Acquire Warner Brothers

Image
As of January 16, 2026, Warner Bros. has rejected Paramount's multiple offers for a takeover. At one point, Paramount bid for 102 Billion, compared to Netflix's 72 billion bid.  Paramount then tried to sue Warner Bros. but that got rejected too.  How can they possibly think they can sue a company for not letting them buy them?  That seems ridiculous to me personally.   In my last article from November 18, 2025, I rated NFLX a buy at a near fair valuation.  On that day, it's stock price was around $100/sh.  I maintain my buy rating as of this writing.  The stock has fallen to $89/sh since November 18th and it's possible that this has something to do with uncertainty on whether NFLX will get to take over WBD or not.  With the stock falling to $89/sh, it's valuation is even better with a blended P/E of 34.54X and a Fair Value Ratio of 40.79X.  In the above image, notice how the black stock price line is below the orange fair valuation line....
Post a Comment
Read more

AVGO is a Hold for Most and a Buy for Aggressive Investors. Price Target: $540/sh by 12/31/2027

Image
AVGO is my favorite company in the S&P 500, even slightly ahead of NVDA as a result of having better diversity in products.  It is presently trading at $398/sh as of market close on November 26, 2025.  AVGO has a blended P/E of 58.34 x according to Fastgraphs and is therefore trading at a high premium (overvaluation).  However, I believe it may continue to trade at a high premium for at least the next 1-2 years, as it just added a fourth major customer in GOOG for it's TPU's.   In the image above, the black price line is well above the orange Fair Value Ratio line, indicating that AVGO is trading at a premium as of this writing.   In the above image, I used a slightly lesser P/E of 43.97 as I believe Broadcom will likely continue to trade at a premium for much of the time through 2027, so this is still an overvalued P/E forecast based on analyst projections.  This would yield a max price of $540/share by 12/31/2027 or an increase of +36% from ...
Post a Comment
Read more

Netflix (NFLX): A Great Company Trading at Near Fair Valuation with Strong Growth Projections

Image
As most people know, Netflix is a giant in the media and entertainment services.  It has been around for more than 20 years and continues to take the S&P 500 to school for performance.  As of this writing, I feel that it is a great company trading at near fair valuation with continued strong growth projections (EPS gains of >20% annually).   In the image above, as of November 18, 2025, we can see the black price line is trading below the orange fair valuation line for the 15-year historical chart.  We can conclude that NFLX is actually near to slightly below fair valuation presently.  The earnings per share growth is greater than 20% for at least the next few years.  Therefore, those who are currently holding NFLX shares can probably feel pretty comfortable holding or adding to their positions.  And for those who do not own shares presently, this is an opportunity to add a position.   Since about 2019 (image above), NFLX has show...
Post a Comment
Read more