Hi YXI friends,

The latest earnings proves that Netflix continues to be a global streaming leader. The company ended Q4 with 302 million paid memberships, an impressive net addition of 19 million subscribers - the largest quarterly growth in its history. This is by no means an easy feat given the size of Netflix’s subscriber base but also that there was a sharp quarterly spike during COVID.

In this article, we will dissect Netflix’s business fundamentals, strategy, valuation, and price technicals. Spoiler alert, there is not much to dislike!

Table of Contents

• 1. EMEA Leads Paid Memberships

• 2. Q4 Growth Reaccelerates

• 3. Profitability Margins Improved YoY, Dropped Seq …

• 4. Share Buybacks

• 5. Valuation Is Fair

• 6. Technical Analysis

• 7. Rating: Overweight

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1. EMEA Leads Paid Memberships

The regional mix for Netflix has been fairly stable. The EMEA region remains Netflix’s largest market in terms of memberships, owning a third of the revenue. The UCAN region (United States and Canada) is a close second, while APCA and LATAM share the remaining pie evenly.

2. Q4 Growth Reaccelerates

Quarterly Revenue

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