Market Overview

Bill Nygren Weighs In On Netflix

Bill Nygren Weighs In On Netflix

Bill Nygren of Oakmark Investor Fund shared with CNBC's "Fast Money Halftime Report" viewers his opinion on Netflix, Inc. (NASDAQ: NFLX). He thinks the current price to earnings ratio of the stock doesn't reflect the reasonable estimate of the business' value.

Other subscription services in the audio and video area have a higher subscription fee than Netflix, but according to user ratings, Netflix doesn't have the least valuable service. Nygren thinks the company has a latent pricing increase potential and in the case of a price increase to $15 per subscription, which the competition is charging, with the current number of subscribers, the price to earnings would be at the market multiple.

When it comes to value per subscriber, Netflix is selling at a price barely higher than the price AT&T Inc. (NYSE: T) is paying for Time Warner Inc (NYSE: TWX), explained Nygren.

Latest Ratings for NFLX

Oct 2019MaintainsOutperform
Oct 2019DowngradesOverweightUnderweight
Oct 2019MaintainsNeutral

View More Analyst Ratings for NFLX
View the Latest Analyst Ratings

Posted-In: Bill Nygren CNBCAnalyst Color Earnings News Guidance Analyst Ratings Media


Related Articles (NFLX + T)

View Comments and Join the Discussion!

How Recent Hurricanes And Earthquakes Can Actually Benefit Reinsurance Investors

Overstock Reaches Highest Level Since July 2013