Netflix’s Wild Run: Will the Hot Streak Continue or Is a Stock Split Coming?

In this Market Mondays clip, the hosts dive deep into Netflix’s blockbuster performance this year and debate whether its explosive growth can keep going—or if a stock pullback is on the horizon. Rashad Bilal, Ian Dunlap, and Troy Millings breakdown recent Netflix news: the company’s ad-supported tier is expected to double revenue in 2025, fresh moves into live sports, premium content strategy, and why they remain the clear leader in the streaming space.

Ian praises Netflix as the “HBO of our era,” highlighting their dominance and innovative approach, including recent sports deals and content quality that outpaces competitors like Disney, Prime, and Max. Troy explains the recent 5% stock pullback—even after outstanding earnings—and addresses concerns about the stock running up “too high, too fast.” The team discusses the possibility of a stock split as Netflix’s price hovers at all-time highs, and whether now is the right time to buy, hold, or wait for a dip.

Key points covered in the clip:

• *Netflix’s Ad-Supported Growth:* Doubling revenue in the ad tier is a big move—can they triple it over the next few years?
• *Sports Content Expansion:* Netflix lands big deals, including a new partnership with boxing expert Max Kellerman and major sporting events.
• *Stock Performance:* Up almost $300 in just a couple of years, with a 52-week high over $1300.
• *Valuation and Future Prospects:* Should Netflix split its stock? The hosts weigh in on how a split could make shares more accessible and drive investor interest.
• *Alternatives for Investors:* If Netflix’s price is too high, the hosts suggest looking at ETFs like FDN, which has the largest allocation to Netflix.
• *Institutional Moves:* Big players like Fidelity and State Street are quietly buying more Netflix.

Whether you’re a longtime investor, considering a buy, or just fascinated by how Netflix keeps reinventing itself, this discussion gives you behind-the-scenes insight and actionable takeaways on one of the hottest stocks in the market.

Let us know in the comments: Do you think Netflix is due for a split? What’s your strategy for investing in streaming stocks?

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#MarketMondays #NetflixStock #Investing #StockMarket #StreamingWars #NetflixSplit #FDN #FinanceClip #StocksToWatch #BusinessNews #IanDunlap #RashadBilal #TroyMillings

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Episode Transcript

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Speaker 3 (01:51):
Talking about another hot investment, Netflix, one of the best
performing stocks this year, said that in twenty well, it's
said that their ad supported tier will double revenue this year.
So is that a signal that the stock will have

(02:15):
a continuous run or when we see some pullback because
it's already going up almost three the last couple of years.

Speaker 4 (02:23):
I mean, they are the pre eminent platform to have
content on. They are the HBO of our era, and
I don't think they get enough credit for how well
they have run that business.

Speaker 1 (02:38):
The fight was pretty good. That was on last weekend.

Speaker 4 (02:42):
The WWE edition, possibly the UFC edition has helped a lot.
I just think they've run this business incredibly well, and
then if they can find a way to double and
then maybe even triple in three or four years, that
ad support the tier. Why having premium content and a
premium price, I don't see even I have all the
other subscriptions to have Prime and Max or HBO Max

(03:03):
whatever it's called.

Speaker 1 (03:04):
Now, no one's better.

Speaker 4 (03:08):
The only competition probably is Google Slash YouTube, and I
think there are leaps and bounds in terms of quality
of content, so more. They have a pullback, for sure,
but I don't think it's a pullback that will go
into correction territory.

Speaker 1 (03:22):
If I can get them.

Speaker 4 (03:23):
At I don't know, probably a ten percent drop from here,
I'll be happy. But this stock has done incredibly well,
and that that management has to get a lot of
credit for doing well and just kicking apples back in
on that side of the business as well.

Speaker 2 (03:39):
Yeah, yeah, and I know people, we are a little confused,
and we've gone over this a few times. A company
reports its earnings, it beats on every line revenue, earnings
per share, pre cash flow, operating income, and beat on
all those lines, and the company still sees the So
the stop pullback of like five, what you have to

(04:02):
take into account is where it came from. And so
if you look at December when it was sitting around
eight forty currently training over twelve hundred dollars, it's had
a nice run up here.

Speaker 1 (04:11):
The problem is it might.

Speaker 2 (04:14):
Have run up too high fast, too fast, and so
what you'll see is people take profit, and that's fine,
that's part of the game. I don't see a correction
happening for it. Like you said, it's the leader in
the space. It's going to continue to be the leader
in the space, and I still think it has room
for expansion. In terms of yes, America is a dominant market,
but there's still countries, there's still areas and regions that

(04:35):
do not have this service, and you could try to
replicate it. Nobody's done it successfully. In terms of competitors, yes,
Disney has been there. In terms of the amount of subscribers.
I know Netflix is no longer sharing their subscriber account,
but Disney has a problem. We talked about it and
hopefully they'll solve it. In terms of live sports and

(04:57):
ESPN and how that was a debt trap for them,
and Netflix has solved it. In fact, they've actually added sports.

Speaker 1 (05:03):
Like I said that absolutely.

Speaker 2 (05:05):
And you know they just signed they just signed Max
Killerman No way what. Yeah, so Max Killerman is now
on Netflix for boxing and they're gonna have the number
one part. Yeah, we're just months away from it. It's
gonna be by far the most watch fight of all time.
They have that under their belt. Obviously they're doing football.
We'll see what they can do in terms of college sports.

(05:26):
I know T and T signed college football, but who
knows what happens with college basketball the way things are looking, so, yeah,
Netflix is here to stay.

Speaker 1 (05:36):
I'll be surprised the next year they don't split.

Speaker 4 (05:40):
I was just gonna ask it is it time for
a split? I mean because they're fifty two week low
was what five eighty eight, five eighty seven five? Yeah,
the highest thirteen forty one. I think it may be
time for a split. I'm sure the shareholders who have
been there for ten to fifteen years may not want.

Speaker 1 (05:58):
It, but be time. It may be time. Yeah, it's
run that hot.

Speaker 2 (06:03):
And so now that the evaluation for the company has
risen to a point where who else in the space
has that type of valuation. Nobody's near them. Yeah, it
might be a time. It might be time for Shaw.

Speaker 4 (06:14):
Do you think that should split or they should keep
the price where it is currently?

Speaker 3 (06:19):
Yeah, I think I think the split would be helpful,
especially if it gets close to that two thousand dollars range.

Speaker 1 (06:24):
Fifteen hundred. Yeah, gotta gotta look it at for sure.

Speaker 4 (06:29):
Yeah, just a couple of steps on Netflix free cash
flow eight point five billion. Let's see altman Z score,
which I've talked about at vest FASTIL last year. But
it's the probability of them going out of business for
bankrupt thirteen out of one hundred, almost impossible. Beta is
one point sixty two fifty two week high. Like I said,

(06:51):
it's thirteen forty one. The stock has just been on
a absolute tear, especially in that industry. Both margin is
forty eight percent, their operation margin is twenty nine percent.
They're netting twenty four for a cost heavy and I
remember when the conversation was it is investing in premium
evergreen content going to collapse them and they just found

(07:12):
a way.

Speaker 1 (07:12):
They figured it out to be better.

Speaker 2 (07:15):
Yeah, they figured out how to get content at a
lower price there, you know what it reminds me of.
And it's starting to feel like when we were watching
Video report and it is good good it's not good
enough anymore.

Speaker 1 (07:28):
Like great is not good enough? They're so great?

Speaker 2 (07:30):
Yeah yeah, And to see it pulled back after it
beat on everything is one of those times where it's like, hey,
yeah they beat I know. Operating clash flow is something
that they were big on and it still beat it. Yeah,
it only beat it by three million, four hundred million,
but it's still a beat.

Speaker 1 (07:46):
Right.

Speaker 2 (07:46):
If you're not if you're not growing, then your declining
and they've grown. And so it's just one of those cases.
It is good, good enough, It is great, good enough
that I'm with them long term.

Speaker 4 (07:58):
Good signed Fidelity at a one point three million shares
in March as well too, So if you want to
see what the whales are doing, them in State Street
of add its shares. So maybe a pullback if it
ever gets back to definitely nine hundred range.

Speaker 1 (08:16):
But if we get to.

Speaker 4 (08:20):
I don't know, eleven eighty eight, which sounds crazy, it
should be a good entry point into the stop if
you have not been investing into it.

Speaker 2 (08:28):
And I gave a great ETF and everybody shout. Everybody
in EYOLU shot everybody that that was what it's in
the class on Thursday. If you look up which ETF
has the largest allocation to Netflix, you will find that Fdno.

Speaker 1 (08:42):
It's a good ETF to perform well for us this year.

Speaker 2 (08:46):
If you can't get a share of Netflix at twelve hundred,
that would be a nice alternative.

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