Here’s the analysis
Is Netflix a Value Play?
The idea of Value Play is buying a good quality business at lower price point. Netflix is a highly profitable business with strong operating margins. The stock is trading at forward multiple of 20.
Netflix stock NFLX stock is underperforming the market big time. It is down a lot from its mid-2025 all-time high of $134 and now trading near $77. Then why the stock is down big time. Reason – The M&A distraction. Netflix launched a massive $82 billion bid to acquire Warner Bros. Discovery. The market really got worried about the size of the deal and how the company would finance such a deal. The debt worry. The good news now is that the company has walked out of the deal. So this worry is gone.
Why the stock needs attention – It is trading near support. The stock bounced big time last time it touched 77. The stock is back to near $77 levels. A 20% bounce from the current levels is likely, if the stock does not crash below 73.
Why Netflix looks like a great business – Operating margin
The company’s operating margin has improved dramatically over the last 3 years. It was 16.8% three years ago, then it became 22.5% two years ago, to 27.7% a year ago, and now sits at 29.7% over the last twelve months. In simple words, the company is adding a larger share of its revenue to the bottom line. This helps the company post much higher EPS growth than revenue.
Can Ford stock attract momentum traders?
Ford stock has been a lackluster stock for quite a while now. It has been a Value stock – Buy Low Sell High story. But the stock over the last few weeks has done something spectacular and now getting strong attention from momentum traders.
The real trigger: AI Play. Ford Energy. The company announced that it is repurposing idle battery manufacturing facilities to produce large-scale, stationary battery energy storage systems (BESS). These massive battery systems are designed to provide grid support for power-hungry AI data centers and utilities. The market is in love with AI and hence this headline sparked a big rally.
The stock recently broke past 100 dma and then did a breakout move. The stock rallied to $17 and since then has come down sharply. There is anticipation that the stock can resume the rally again.
The current pullback in the stock looks like a buying opportunity.
Accenture – Why chasing Value is a bad idea when it comes to business in decline
Accenture is trading at forward multiple of 9. But does that matter? Investors chase growth and when the business starts declining, investors/traders dump the stock. Accenture stock just in 2026 has declined from 280 to 127. It’s a classic example of why one should never buy a stock just because its trading near lows.
Qualcomm QCOM- The Best Semiconductor stock to buy
Semiconductor stocks have been on fire, but one stock has been late to the party and that is Qualcomm. The stock has recently broken out and it seems the stock is still at a good place to add.
Price Action Trigger: The company’s successful entry into the cloud data center market—a space long dominated by Nvidia and AMD. Analysts have turned super bullish. JPMorgan recently placed QCOM on a “Positive Catalyst Watch” and hiked its price target to $265, predicting Qualcomm’s data center sales could scale past $3 billion by 2027 and reach $35 billion by 2031
Chart Source: Finviz.com
Please do your own due diligence before making any investing/trading decisions. I am just sharing my opinion. It is based on price action and things can change pretty dramatically. So, always make careful decisions.
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