Is It Time to Buy Netflix (NFLX) Stock?
Earlier this month, after reporting record subscriber growth in the last quarter, management at streaming giant and stock market darling Netflix gave guidance for a “soft” second half of 2020.
And investors sent shares down from a 52-week high of $575 all the way to nearly $450. That’s a pretty big drop and it has some people wondering if the air that may have been filing the Big Tech bubble for the past few months is finally leaking out.
But, it’s also got about half of the analysts covering the stock screaming, “Buy, buy, buy!” So, what gives? Is now the time to buy Netflix stock?
The bullish analysts are boosting price targets up as high as $600. From where shares are today that would be a $120 move up the chart. That’s a respectable 25% gain.
But what if I told you there was a way you could profit from Netflix whether its shares go up or down? What if I let you in on a secret strategy to collect “royalties” every time someone uses Netflix's streaming services?
Well, you don’t have to imagine what you’d do or say because I’ve got just such an opportunity for you today.
The “Royalty” Business Is a Good Business
My colleague, Briton Ryle and I have nearly 50 years of combined experience in the stock market. He earned his stripes trading options on the CBOE years back, and I got my baptism by fire at investment banking supergiant Morgan Stanley.
So, to say we’ve got a little experience under our belts might be an understatement. We both live this stuff and have for decades. And when both of us are flabbergasted by the potential profits of an investment opportunity, we know it’s one for the record books.
That’s the case with the “Netflix Royalties” I’m talking about today. But this isn’t the first opportunity to smack us in the face and say, “Take this money!”
We’ve been personally profiting from “royalty programs” like these for years and so have the members of our investing community, The Wealth Advisory.
A few years back, we saw the obvious growth hitting the legal cannabis market. But we knew a lot of those share price moves were pure speculation and that a reckoning was coming for those high-flying pot stocks.
So, we didn’t want to get caught holding that bag when the bottom fell out of the market. But we knew there was a way to profit from cannabis no matter what happened to the individual companies. As long as the industry survived, there would always be a way to make money off it.
We did a lot of research and due diligence and found the perfect opportunity in a small, unknown firm called Innovative Industrial Properties. Innovative Industrial is what’s known as a real estate investment trust, or REIT.
REITs own assets like buildings, land, and equipment and rent those assets back to companies that operate in an industry that requires them. Some own shopping malls. Some own farmland. Some even own the cloud where all our data lives.
But Innovative Industrial was different in that it owned the land, buildings, and equipment needed to grow and process cannabis for sale. It didn’t grow the plants. It didn’t process them into retail products. It didn’t sell them at dispensaries. It just owned all the infrastructure needed to do those things.
So, no matter what company became the Anheuser-Busch of cannabis, Innovative Industrial would profit and its shareholders would, too.
So far, we’re up more than 450% on that investment. If you’d put $10,000 into our recommendation, you’d have over $55,000 now and you’d have collected over $3,000 in cash payouts we jokingly call “Reefer Royalties.”
Pretty good, huh? And that’s not even the best “royalty” investment we’ve discovered in just the past few years. In fact, we uncovered another company providing a crucial service for major corporations like Uber, Morgan Stanley, Facebook, and Walmart.
Again, it was a little-known company. But this time, it wasn’t providing physical assets, but digital services. The company’s name was Twilio. And the service it provided was communication.
If you’ve ever been in a chat with customer service or gotten a text from your Uber driver to let you know she’s arrived, then you’ve used this company’s services. And you probably had no idea.
But we did. And we recommended an investment to our TWA members so they could get a share of the “royalties” Twilio was charging all of its big-name clients. So far, our investors are up over 725%.
That means for every $10,000 invested, they’ve locked in $72,500 in “royalty” profits.
I could go on and on telling you about all the massive profits we’ve seen from “royalty” plays like this, but I think you get the picture. They’re hard to find, but they're out there. And they’re incredibly profitable.
One SaaS-sy New Model
So, now that you understand what I’m talking about and just how life-changing the profits can be, let’s talk a little about the latest opportunity we’ve uncovered. Then I’ll show you how you can join us and profit from “Netflix Royalties,” too.
You see, this company, like Twilio, is part of a new breed of technology companies. There’s a whole industry of them. But most investors know nothing about these companies.
That’s because these companies don’t need a breakthrough product or device. And they don’t need to win patent wars to make billions in profits. All they need to do is provide a service that’s critical to the operation of other companies.
And it’s spawned an entirely new business model called Software as a Service, or SaaS. All that really means, though, is that the software “lives” online and can be accessed from anywhere. All you need is a subscription.
For Twilio that service was communication. And all the subscriptions it’s sold add up to more than $1 billion a year in revenues. I’ve got a report for you at the end that gives even more examples of these kinds of companies and the kinds of profits they’ve delivered to investors.
But the main bullet point here is that these businesses get paid with cash over and over again.
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How to Make Netflix Pay You
For this company, security is the service. And while it’s not as big as Twilio yet, its subscriptions already add up to hundreds of millions of dollars a year. And they’re growing fast.
This software company has its foot in the backdoor of the world’s largest streaming giant, Netflix. And that’s because it provides a service that’s mission critical to Netflix’s entire operation. The company literally could not operate on a day-to-day basis without this company’s support.
Because that support is what enables Netflix to operate its website — safely and securely.
That’s right. Every time you or someone else logs in to binge-watch Netflix, you’re able to do it because of a service provided by this company. And Netflix pays this company a “royalty” every single month in order to keep the business running smoothly.
The company’s software helps keep users’ names and password information safe. And it also helps to verify the user’s identity to make sure your accounts aren’t getting hacked.
Basically, it prevents security breaches on Netflix’s network by making sure users are exactly who they say they are. It might not sound that flashy or important, but without this software, Netflix simply could not operate.
That means Netflix has no choice but to keep paying for the services month after month, year after year. And Netflix isn’t the only corporate juggernaut that’s paying this small software firm for its identity verification service.
All the Best and Biggest
In addition to Netflix, this company counts some really heavy hitters and big spenders as customers.
This list includes all 12 of the largest U.S. banks (including Bank of America and Citigroup), eight of the 10 largest biopharmaceutical companies in the world, four of the five largest health care plans in America, five of the seven largest U.S. retailers, and a host of Fortune 100 companies like Intuit and ScottsMiracle-Gro.
That’s a pretty impressive list. And it’s not even close to complete. All told, this company has around 1,300 corporate customers and over 2 billion accounts it keeps safe and secure.
That means literally billions of people use this company’s services every day but likely have no idea the company even exists. That’s a huge opportunity for investors like you.
Because demand for this company’s technology is only growing as the corporate world becomes more digitized every day, early investors in this company are going to hit it big — maybe even big enough to make that 700% plus gain on Twilio look like peanuts.
So, before the rest of the world learns about this critical company, and the share price shoots up as investors race each other to get a piece of these lucrative “royalties,” do yourself a favor and get some skin in the game yourself.
Since uncovering this opportunity just a few weeks ago, our investors have already watched as a $10,000 initial stake grew to over $12,700. Just think what you could do if you were making an extra $2,700 every couple of weeks.
But the growth here is far from over. I’m predicting that this company’s share price could climb into the triple digits within the next year. And that would just be the first 200% gain.
Within the next few years, we could be looking at an investment that’s returned over 10 times your money. But the catch is that you need to get involved today.
If you wait and see what will happen, you’ll miss the biggest gains and watch as your friends get rich off this “Netflix Royalty” play.
So, take a few minutes out of your day to read this report we put together detailing the industry, the business model, the company, and how you can get invested today.
Don’t delay. Even a few days could be the difference between life-changing profits and that measly 25% gain analysts are hoping Netflix can eek out.
To your wealth,
After graduating Cum Laude in finance and economics, Jason analyzed complex projects and budgets for the U.S. Army. Then, at Morgan Stanley, he led the assistants' team for the North American repo sales desk, responsible for hundreds of multibillion-dollar trades every day. Jason is the founder of Main Street Ventures and an editor for The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.
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