![]() That resonated with the S&P, which is keeping Netflix's 'BBB' rating for now after it upgraded Netflix's long-term credit rating by two notches to Investment-Grade. Netflix's business and financial fundamentals are strong. However, it's not all downhill from here. Likewise, as Scott Mendelson points out, Netflix and Disney+ ( DIS) are the " victim of inflated Wall Street expectations'' during the pandemic. Overall, the "sell-off was excessive", as Evercore ISI's senior managing director and head of Internet Research Mark Mahaney puts it. Is the drop in subscriber base and revenue growth fatal? ![]() This article provides insights and synthesis of different data points and signals for growth based on Netflix's activities. Investors should gauge a correct entry point as outlined at the end. Therefore, a buy rating is given to Netflix stock based on the deep-dive analysis listed below. This should be a bargain for a reasonably priced value growth stock and provide a recommendation for portfolio allocation during the rising inflation period. Netflix has a 50% upside and delivered a healthy reversal in a 12 to 24-month time (with the price target of $300, which is reasonable based on Earning Per Share (EPS) of $13-14 and P/E ratio of 21 to 23). With the current rising inflation at a record high rate of 8.5%, this article provides comprehensive data points to determine whether Netflix stock presents an opportunity for a long-term investment bargain. Now its stock price is back to the December 2017 (Q4 2017) level, but the overall business remains strong. Its stock price plunged over 73% from an all-time high of $700.99 in November 2021 and 63% from January 2022's high of $526 to $188.54 as of April 27 closing. ![]() The first quarter of 2022 is undoubtedly a watershed moment for Netflix ( NASDAQ: NFLX) and its investors. GoodLifeStudio/iStock Unreleased via Getty Images
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