Despite Netflix shares being down 45% over the past 12 months due to slowing revenue growth and competition concerns, the article argues there are strong reasons for optimism. Netflix has penetrated only 45% of addressable households and captures just 7% of addressable revenue market, indicating massive growth potential. The company is expanding live programming (including sports rights like the FIFA Women's World Cup and plans to bid for the Men's World Cup), long-form video podcasts, and gaming initiatives to boost subscriber engagement and leverage its strong brand moat.
Axe note: Netflix's low market penetration and new content push offer growth, but South African investors should weigh FX and local relevance.