WATCH: Stock pick — Netflix
Imtiaz Suliman from Sentio Capital talks to Business Day TV about his stock pick of the day
Imtiaz Suliman from Sentio Capital chose Netflix as his stock pick of the day.
“I’m going for Netflix, it’s a company that was largely born out of the US. Their growth now is in the rest of the world, whereby they have more users outside the US than in the US and as they gather scale, they have this content platform that they are reinvesting a massive amount of their free cash flow into.
“The second pillar of their growth is for them to increase prices to bring them on par with the US, and closing that gap between the US and the rest of the world in terms of pricing will provide them with quite a strong revenue or top-line growth, and that bodes well for margins going forward.”
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