“The stock has doubled this year, and added another $50B of market capitalization over the past quarter. Without meaningful positive estimate revisions, or 3Q subscriber guidance coming in ahead of expectations, it seems unlikely that the stock will move higher next week,” Kraft added. “The stock might see a pull back in the short term (i.e. next week), but we see significant long term, multiyear value creation ahead.”
Mark Tepper, president and CEO of Strategic Wealth Partners, also warned of the high valuations with Netflix now showing a trailing price-earnings ratio in the triple digits and gains of more than 100% year-to-date, questioning whether or not the media company is able to maintain its break-neck growth spurt, CNBC reports.
Furthermore, Tepper believed that competition may heat up, especially from Hulu, Disney or Amazon Prime as they develop more original content.
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