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Netflix's Co-CEO Ted Sarandos Just Gave Investors Bad News Before Earnings
Yahoo Finance • • business
Key Points:
- Netflix is set to report earnings on Tuesday amid concerns, as Co-CEO Ted Sarandos revealed the company is laying off about 6% of its workforce and admitted growth is slower than desired.
- Despite these challenges, Netflix management communicated to employees that the company remains on track to meet its full-year revenue forecast of 13% to 14% growth, targeting around $51 billion.
- Netflix's stock has declined over 25% this year, underperforming the S&P 500, but it currently trades at a forward P/E ratio under 19, suggesting potential undervaluation given its ongoing investments in content, sports, gaming, and international expansion.
- While Netflix's growth remains in double digits and its streaming plans retain consumer appeal, some analysts urge caution, noting it was not included in Motley Fool's latest top 10 stock picks, indicating there may be better investment opportunities elsewhere.
