Is it worth buying Netflix shares in 2023?

Netflix is one of the most popular video streaming services in the world, quickly gaining the trust of millions of users worldwide and becoming the main competitor to traditional television. But is it worth investing in Netflix stocks in 2023?

About the company: Netflix is an American company that provides online video content viewing services. It was founded in 1997 in California by two friends, Marc Randolph and Reed Hastings. Initially, the company was engaged in renting DVD discs, but in 2007, it switched to a streaming model.

Today, Netflix is one of the most popular and successful entertainment companies in the world. Its catalog has over 200 million subscribers who can watch thousands of movies, TV shows, documentaries and shows. The company has developed its own original projects, which have become real hits, such as "The Crown," "Money Heist," "The Witcher" and others.

Netflix has implemented its business model on the global market and has been able to successfully realize it. The company invests billions of dollars in content production and promotion of its services. Netflix actively develops marketing strategies by collaborating with well-known directors and producers and buying exclusive content rights.

Netflix quickly adapted to changing conditions in the global market and became a leader in the industry. It not only provides movie and TV show viewing services, but also creates its own content, attracting famous actors and directors. The company continues to grow and expand its catalog, offering new projects and interacting with the audience. Netflix is a company that occupies an important place in the global entertainment industry and continues to develop further.

According to financial results for the first quarter of 2023, the company has revenue of $8.1 billion and operating profit of $1.7 billion. In addition, free cash flow (FCF) is $2.1 billion, and earnings per share (EPS) are $2.88.

Despite relatively good financial results, Netflix’s subscriber growth was weaker than expected. The company faced difficulties in revenue growth, especially in the United States, where competition in the video streaming market has reached new heights. Additionally, the highest increase in subscribers was observed in regions where subscription costs are significantly lower, which does not add to the company’s revenue growth.

Despite this, Netflix continues to actively work on improving profitability. The company is confident that its strategy, which is based on creating new original content, will be successful. Netflix will continue to invest in technological innovations to improve user experience and attract new subscribers.

Buying Netflix stocks in 2023 may be a promising investment. The company continues to grow and improve its results, which could lead to an increase in its stock prices. However, as with any investment, one should remember the risks and conduct market analysis before making a decision. The main risk is that subscriber growth was lower than expected, with stiff competition from other major video streaming services, including Apple TV, Amazon Prime, and others.