The Warner Brothers acquisition was just a distraction and its kinda funny that NFLX got paid a $2.8B Breakup fee. Free money.
**They should pay a special dividend out to shareholders.**
But back to my original point that NFLX is still a growth stock not just for the United State but globally. Outside the US is where hey have ALOT of potential to grow.
Legacy US media companies historically built content for Americans and shipped it abroad. Netflix flipped this script. By building massive studio operations in places like Seoul, Madrid, Tokyo, and Mumbai, they produce hyper-localized content that is incredibly cheap relative to Hollywood budgets but carries massive global appeal.
* **Europe, Middle East, and Africa (EMEA):** \~101 million subscribers
* This region has surpassed North America to become Netflix’s largest subscriber base, crossing 100 million users.
* **United States and Canada:** \~90 million subscribers
* This market is very saturated and has mostly matured. The Warner Brother's deal showed that there isn't much growth left here just companies buying each other and dividing the content and IP. Netflix is looking to add live TV as a potential area to attract new customers, im sure it will be cheaper than YouTube TV.
* **Asia-Pacific (APAC):** \~58 million subscribers
* This region is currently its fastest-growing market, seeing roughly 18% year-over-year subscriber growth. Massive untapped or under-penetrated populations in Southeast Asia and India provide a multi-year runway for expansion.
* **Latin America:** \~53 million subscribers
* This region is a highly lucrative regions with reported double-digit year-over-year revenue growth. The region has had limited high speed internet and 5g access but with network upgrades and infrastructure being built out millions of new middle-class households are gaining the capability to stream high-definition video for the first time.
When all the AI stocks crash and we slip into a recession NFLX will be the go to for entertainment. The stock is recession proof.
Here is how analysts break down the forecast:
* **Average Target:** $113.65
* **High Forecast:** $151.40
* **Low Forecast:** $95.00