Netflix (NASDAQ: NFLX) has seen its stock drop around 46% since peaking last summer, as earnings growth has slowed and management has moved to disclose less information about viewer engagement.
But in my opinion, the sell-off has gone too far, and investors are ignoring the massive free cash flow generating capabilities of the premier streaming business
Netflix is on track to produce $12.5 billion in free cash flow this year, and that number could climb significantly higher in the years to come. That makes the stock a compelling buy at its current price. Missed Nvidia in 2009?
This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia.