This FAANG Stock Might Be Down, But Revenues Are up – Making It a Clear Buy
Last year was huge for growth stocks. But since then, for one reason or another, many have seen their all-time highs crumble under the pressure of inflation, rising interest rates, and a whole slew of other factors.
Not even the big-name FAANG stocks are safe.
But stock prices are not always reflective of how a company is performing; many have reported stellar earnings numbers that simply aren’t being reflected in the value of their stocks.
We know this recent downturn won’t last forever, which means there are plenty of opportunities to grab up shares at a discount.
So today, we’re going to look at a company whose stock is 47% off its all-time highs but has had double-digit quarterly earnings and revenue growth year-over-year, making it a clear buy in my book.
Hey, everybody Shah Gilani here with your take it to the bank Tuesday, where I recommend what you should do with $100 today as in right now.
And right now it’s all about Netflix (NASDAQ: NFLX). Yes. The N in the FAANGs. Netflix has been left for dead, which is absolutely insane because Netflix is still hitting it out of the park. As far as I’m concerned, it’s just the stock that looks like it fell out of bed. The company hasn’t done anything but continue to make money and continue to grow. Yes, they’re not getting as many subscribers monthly as they were. So what. The business, the space is maturing.
There’s lots of competition, but year over year, quarterly revenue growth, 16% people year over year, quarterly earnings growth, 12%. What are people talking about this company isn’t doing well? It’s doing just fine, thank you.
The stock, however, is down trading around $368 a share from $700 a share back in November of last year. That’s a 47% haircut and an opportunity for you guys to pick up a hundred dollars worth. At least.
Why? Because earnings are coming out April 12th and three out of the last four earnings reporting periods, Netflix beat Wall Street’s consensus estimates by an average of 37 and a half percent. Now, if they hit it out of the park this time, or even just a modest beat, the stock has been shorted a little bit down here. It’s been knocked down and it’s really off every one’s radar. It’ll come right back immediately onto people’s radar. And that means that the stock can pop, I think from 368, where it is now to, I think north of 500 bucks, that would be quick 35% gain.
Will it happen as the earnings come shortly after? Not sure wouldn’t surprise me if it did, but I think Netflix is going back up way up. It’s going to take a little time for it to get back up to 700 and break out and make a new high. But if you get a pop on 368 to 500, you’re sitting on a very nice gain, which will allow you to sleep very comfortably. So I recommend for your a hundred dollars today, you buy Netflix, wait for the earnings. And if things go going to plan, you’ll be taking it to the bank. Catch you next week.