Netflix's Stock Is Still Worth $110

Long-term domestic subscriber growth is under doubt while international growth looks promising. The competition is developing in the U.S. and Netflix will need to spend heavily to differentiate itself. Additionally, as we mentioned above, retaining newer subscribers who are not early adopters of streaming might be a little harder. Such subscribers may browse streaming content and at times may not find it very appealing, leaving Netflix and creating a higher churn. While we have increased our international subscriber growth forecasts, we have reduced the same for domestic streaming business.

Our price estimate for Netflix stands at $110, implying a premium of about 25% to the market price.

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