Growth at Netflix is underestimated

I recently read a Goldman Sachs report about Netflix which suggests that the market underestimates the adoption of mobile subscribers. And I tend to agree. Here at Vestact we are mostly glued to our screens in our comfy office but many people do a lot of travelling for work. Many people download their content at home, using wifi, and then watch it on the go. What better way to pass the time than to binge watch Netflix? It doesn't even have to be mindless fiction, Netflix has a considerable amount of educational content.

This also includes millions of people who commute to work. The report estimates an extra 30 million subscribers in 2019 versus consensus of 25 million. As smartphones get bigger HD screens and earphone quality improves, the mobile experience is enhanced.

We feel that one of the best ways to make money in the stock market is to pick stocks that will surprise the market. Even if the expectations are already high, as they are with Netflix. So far the subscriber growth has been phenomenal. An extra 30 million next year would continue that trend.