Oakmark's Win Murray Likes Netflix Stock At Current Levels

Oakmark's Win Murray thinks Netflix Inc NFLX is a good investment at current levels, he shared Monday on CNBC's "Squawk On The Street."

Netflix's margins are consistently growing, Murray said, adding that in the first quarter of 2019 Netflix had 10% margins and last year it had 17% margins. This year the company had 27% margins in the first quarter. 

Murray told CNBC he thinks in a few years Netflix will be capable of producing earnings of $25 to $30 per share.

The company is investing a lot of money in content creation which further strengthens its outstanding strategic positioning, Murray said.

What Happened: Netflix fell as much as 11% after it reported lower-than-expected paid net subscriber additions on April 20. The company reported earnings of $3.75 per share, beating the estimate of $2.97 per share. Netflix reported revenue of $7.16 billion, beating the estimate of $7.13 billion. 

Related Link: Netflix Shares Fall On Lower Q1 Subscription Growth: What Investors Should Know

NFLX Price Action: Netflix traded as high as $593.28 and as low as $397.86 over a 52-week period. At last check Monday, the stock was down 1.88% at $494.39.

(Image by Tumisu from Pixabay)