Netflix and Booking, after the split 1 years 25% decline still prompts long-term buy recommendation
Netflix and Booking Holdings saw their share prices fall over the past 1 years 25% after their stock splits. The article recommended buying both stocks during the downturn and holding them for 10 years. It cited Netflix’s expansion into live sports and advertising, and Booking’s growth in Asia and network effects, as investment reasons.
Netflix and Booking Holdings saw their share prices fall over the past 1 years 25% since their stock splits. The article characterized the decline as a chance to buy at a lower price. It said both stocks had been in a downturn since the splits.
Netflix was assessed as having a large total addressable market for streaming. The article identified live sports deals and expansion of its advertising business as the main avenues for Netflix’s business expansion. It said these two avenues could affect revenue and profitability over the medium to long term.
Booking Holdings was assessed as having room to grow in Asia. The article said Booking’s platform was building a competitive advantage through network effects. However, it also mentioned concerns about changes to the business structure due to artificial intelligence (AI) technology.
The article recommended a long-term holding strategy combining the two companies’ share-price declines with their potential for business growth. It did not specify a particular time to buy. It assumed an investment horizon of 10years.
For Netflix, whether it can secure live sports deals and the pace of advertising monetization were identified as key variables. For Booking, the key issues were expanding its market share in Asia and maintaining the strength of its platform. The article said AI-related changes could create uncertainty for Booking’s business model.
In summary, the article presented Netflix and Booking as long-term investment candidates based on each company’s growth drivers, while clearly noting short-term risks. It recommended buying the two stocks during downturns and holding them for 10years. It advised investors to assess each company’s growth indicators separately.
Sources: The Motley Fool
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