Netflix: The Carnage Continues As Growth Slows

Long Player Investing Group Leader Follow Summary Netflix, Inc. is transitioning from high-growth valuations to a mature, slower-growth going concern. Current NFLX stock valuation remains stretched, with growth now expected in the low teens rather than prior meteoric rates. Recent earnings confirm a decelerating revenue growth rate each quarter, despite operating margin and free cash flow improvements. Fourth quarter guidance indicates further, albeit marginal, revenue growth slowdown, likely disappointing bullish expectations. This process will likely continue until the company meets the criteria for a growth and income idea. This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » JasonDoiy/iStock Unreleased via Getty Images Netflix, Inc. ( NFLX ) is probably never going back to the heady valuations of the past. Rather, the conversion of the valuation to a going concern where growth is inevitably slowing as happens eventually to all This article was written by Long Player 26.05K Followers Follow Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor, and this is not a recommendation to buy or sell a security. Investors are recommended to read all of the company's filings and press releases, as well as do their own research to determine if the company fits their own investment objectives and risk portfolios. I may buy more shares without any further notice. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.