Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Netflix Inc.'s Q1 2024 earnings highlighted a number of impactful developments and strategic shifts that investors should consider.</li><li>The company's management team made it clear that while they'll no longer be reporting quarterly membership in ARM data starting in 2025, they will continue to provide updates on key metrics including revenue, OI, OI margin, net income, EPS, and free cash flow.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Netflix Inc.'s Q1 2024 earnings highlighted a number of impactful developments and strategic shifts that investors should consider.The company's management team made it clear that while they'll no longer be reporting quarterly membership in ARM data starting in 2025, they will continue to provide updates on key metrics including revenue, OI, OI margin, net income, EPS, and free cash flow.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Netflix Inc.: A Shift In Reporting Focus from Subscriptions to Revenue and Engagement - But What Lies Ahead? - Major Drivers

Mostly Borrowed Ideas Deep Dives, MBI Deep Dives

MBI Deep Dives

Mostly Borrowed Ideas Deep Dives

MBI is the abbreviation for “Mostly Borrowed Ideas”. Why “Mostly Borrowed Ideas?” As a generalist, I do not have a background in any particular sector. I enjoy navigating across industries, businesses, and countries to learn, understand, and connect the dots. In any case, most ideas and innovations are incremental in nature. Very few of us are smart enough to come up with truly original or groundbreaking ideas. I am Abdullah Al-Rezwan. I was born and brought up in Bangladesh. I went to University of Dhaka for my undergrad and majored in Finance. After working three and half years in Equity Research (Sell-side) covering Financial Sector in Bangladesh, I left Bangladesh to pursue my MBA in the US. I graduated within top 10% of the class from Cornell University's two-year MBA program and worked on the buy-side following my graduation. During my time at Cornell, I won two stock pitch competitions and also became finalists in four other competitions. I thoroughly enjoyed my stint as a generalist in the US large cap team at Madison Investments and covered a wide range of companies from UnitedHealth to Amazon and Boeing before US immigration reality paused my career in investment management. As my work authorization expired, I moved to Canada in January, 2021. Then in early 2022, I was able to return to the US.

<ul><li>While not exactly Meta-like twists and turns, Spotify’s rise from the ashes of late 2022 perhaps slipped through many investors’ mind.</li><li>The stock was at ~$70 in December, 2022. Today, it closed at $232.</li><li>Before I get to my highlights from today’s call, let me first mention that I am no longer a shareholder of Spotify as I sold my shares today at $243</li></ul>

While not exactly Meta-like twists and turns, Spotify’s rise from the ashes of late 2022 perhaps slipped through many investors’ mind.The stock was at ~$70 in December, 2022. Today, it closed at $232.Before I get to my highlights from today’s call, let me first mention that I am no longer a shareholder of Spotify as I sold my shares today at $243

<ul><li>Netflix, in their recent Q4 2023 earnings call, highlighted key developments that signal both progress and future challenges for the company.</li><li>The firm elaborated on its partnership with WWE, where Netflix airs live WWE events.</li><li>As per co-CEO Theodore Sarandos, fans of WWE have lauded this move, many of whom Netflix assumes were underserved previously.</li></ul>

Netflix, in their recent Q4 2023 earnings call, highlighted key developments that signal both progress and future challenges for the company.The firm elaborated on its partnership with WWE, where Netflix airs live WWE events.As per co-CEO Theodore Sarandos, fans of WWE have lauded this move, many of whom Netflix assumes were underserved previously.

Netflix Inc: Will Its Foray Into Live Entertainment Result In Phenomenal Subscriber Growth? - Major Drivers

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>We turn more positive on Netflix’s enhanced monetization, expansion of TAM (with AVOD and paid sharing) and margin improvement.</li><li>Netflix delivered an eye-catching 4Q23 with upbeat subs and OPM, with ad-supported subs +70% QoQ.</li><li>We expect its strong momentum to continue, backed by: 1) deeper AVOD penetration, with the basic plan to be eliminated in Canada and the UK in 2Q24E; 2) paid sharing to tap into a larger household base; and 3) content to pick up. Mgmt raised its FY24E OPM to 24% from 22%-23%, on efficient content spending and stronger rev. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We turn more positive on Netflix’s enhanced monetization, expansion of TAM (with AVOD and paid sharing) and margin improvement.Netflix delivered an eye-catching 4Q23 with upbeat subs and OPM, with ad-supported subs +70% QoQ.We expect its strong momentum to continue, backed by: 1) deeper AVOD penetration, with the basic plan to be eliminated in Canada and the UK in 2Q24E; 2) paid sharing to tap into a larger household base; and 3) content to pick up. Mgmt raised its FY24E OPM to 24% from 22%-23%, on efficient content spending and stronger rev. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Netflix (NFLX US) - Bullish on Margin Expansion and Subs Upside

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>SK Square announced it will not exercise the call option to repurchase minority stake in 11 Street. This is likely to have a positive impact on the company. </li>
<li>SK Square does not need to pay 500 billion won plus 3.5% annualized interest to the financial investors of 11 Street. This will also accelerate sale of 11 Street.</li>
<li>In addition, SK Square announced the merger of TVing and Wavve OTT services. </li>
</ul>


SK Square announced it will not exercise the call option to repurchase minority stake in 11 Street. This is likely to have a positive impact on the company. 
SK Square does not need to pay 500 billion won plus 3.5% annualized interest to the financial investors of 11 Street. This will also accelerate sale of 11 Street.
In addition, SK Square announced the merger of TVing and Wavve OTT services. 


SK Square: Drag Along Rights To Be Exercised to Sell 11 Street + Merger of TVing and Wavve

United States

Netflix Inc. is an Internet subscription service for watching tv shows and movies. Subscribers can instantly watch unlimited TV shows and movies streamed over the Internet to their TVs, computers and mobile devices and in the United States, subscribers can receive standard definition DVDs and Blu-ray Discs delivered to their homes.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Netflix Inc (NFLX US)

Netflix Inc.: A Shift In Reporting Focus from Subscriptions to Revenue and Engagement - But What Lies Ahead? - Major Drivers

Netflix Inc.'s Q1 2024 earnings highlighted a number of impactful developments and strategic shifts that investors should consider. The company's...

Baptista Research

Spotify 4Q'23 Update

While not exactly Meta-like twists and turns, Spotify’s rise from the ashes of late 2022 perhaps slipped through many investors’ mind.

MBI Deep Dives

Netflix Inc: Will Its Foray Into Live Entertainment Result In Phenomenal Subscriber Growth? - Major Drivers

Netflix, in their recent Q4 2023 earnings call, highlighted key developments that signal both progress and future challenges for the company. The...

Baptista Research

Netflix (NFLX US) - Bullish on Margin Expansion and Subs Upside

We turn more positive on Netflix’s enhanced monetization, expansion of TAM (with AVOD and paid sharing) and margin improvement.

CMB International

SK Square: Drag Along Rights To Be Exercised to Sell 11 Street + Merger of TVing and Wavve

According to Chosun Business Daily, the financial investors (Nile Holdings Consortium) want to sell 11st at about 600 billion won (100% stake),...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)