Looking at Netflix Stock: What Matters Now?

If you're wondering what drives the value of Netflix stock these days, a recent analysis points to a shift in focus among investors. It's not just about how many new people sign up anymore. According to the analysis, understanding Netflix's value now relies more on key financial numbers that show how much cash the company is actually making. This includes measures like how much cash is left after paying for operations (often called Free Cash Flow) and comparing the company's earnings to its stock price (known as the P/E ratio). The article suggests that when you look at these financial health indicators, Netflix's stock currently appears quite expensive compared to where it has been in the past or relative to some other companies. This high price tag seems to indicate that investors are expecting Netflix to continue growing its cash flow and profits significantly. Essentially, the story for Netflix's stock has evolved from a pure growth-at-all-costs approach to one where profitability and the ability to generate real cash are increasingly important factors in determining its value.