The Bull Case For Netflix (NFLX) Could Change Following Live Sports Push with Canelo-Crawford Partnership

• Joe Hand Promotions recently announced a partnership with Netflix to bring the Canelo Alvarez vs. Terence "Bud" Crawford boxing match to commercial venues across the U.S. and Canada, utilizing DirecTV for Business, DISH, and streaming options for the live event broadcast.
• This development highlights Netflix’s ongoing expansion into live sports distribution, offering opportunities to reach broader audiences and strengthen its presence in commercial settings.
• We'll explore how the broader reach from live sports distribution could influence Netflix's investment outlook and projected growth drivers.

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Netflix Investment Narrative Recap

To be a Netflix shareholder today, you need to believe that the company can expand beyond traditional streaming into emerging content formats like live sports, driving engagement in both commercial and consumer settings. While the recent boxing event deal underscores Netflix’s ambitions, it is unlikely to materially change the near-term catalyst, faster ad monetization, as well as the main risk, which remains the escalating cost of premium content and acquiring new subscribers in mature markets.

Of recent announcements, the expanded partnership with TF1 Group in France is most relevant, as it highlights Netflix's focus on international growth and exclusive content. Together with moves into live events, these initiatives support one of the core growth drivers: deepening market penetration and diversifying offerings beyond saturated US and European audiences.

Yet, in contrast, investors should also be aware of the rising content costs associated with these endeavors, especially if engagement fails to scale as quickly as expected...

Read the full narrative on Netflix (it's free!)

Netflix's outlook anticipates $59.4 billion in revenue and $17.7 billion in earnings by 2028. This scenario assumes a 12.5% annual revenue growth rate and a $7.5 billion increase in earnings from today's level of $10.2 billion.

Uncover how Netflix's forecasts yield a $1350 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have posted 47 fair value estimates for Netflix, ranging widely from US$710 to US$1,372.34 per share. With content costs and market saturation top of mind for many, see how your outlook stacks up against this array of opinions.

Explore 47 other fair value estimates on Netflix - why the stock might be worth 43% less than the current price!

Build Your Own Netflix Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Netflix research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Netflix research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Netflix's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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