(This story first appeared on Seeking Alpha (SA) today, and was written by Alessandro Pasetti, the founder of Hedging Beta.)
Summary
- I like Netflix.
- I like it even more when I consider the level of demand for its bonds in early 2015.
- Its cost of equity is rather low.
- Debt and price strategies give it plenty of flexibility.
- NFLX trades above fair value but you would not be wise to short it.
It’s very easy to say that Netflix’s (NASDAQ:NFLX) balance sheet is weak. That’s what the headline numbers suggest.
It’s also plausible to argue that its revenue growth might become less appealing at some point in future.
After all, that time is now.
It’s also plausible to argue that its revenue growth might become less appealing at some point in future.
After all, that time is now.
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