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Julian Robertson: The Market 'Is Quite High on a Historical Basis’

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Part 3
Julian Robertson: The Market 'Is Quite High on a Historical Basis’ PART 3 OF 5

Why Julian Robertson Loves Netflix

Julian Robertson on Netflix

Julian Robertson discussed his interest in Netflix (NFLX) at the 2017 Delivering Alpha Conference. Although he believes we are in a stock market bubble, he’s still optimistic about some technology stocks.

Why Julian Robertson Loves Netflix

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In the previous part, we saw his view on various large-cap technology stocks and why he is still betting on major technology stocks. He said at the Delivering Alpha Conference, “[Netflix] is awfully tempting to me because it’s run by really good people. And I love it too. Does anyone not like Netflix? That’s like saying you hate Santa Claus.”

Netflix’s performance

On September 21, 2017, Netflix was trading at $188.78. Its 52-week high is $191.50 and its 52-week low is $94.04. On a year-to-date basis, the stock returned nearly 48% as of September 21, 2017. In the past year, the stock returned nearly 96%. This shows that the stock provided a tremendous performance in the last one year. The broader market S&P 500 Index (SPY) returned nearly 15.5% in the last one year.

The stock is trading at a trailing price-to-earnings multiple of 230x, while the consumer services sector is trading at a trailing price-to-earnings multiple of 28.9x. The one-year EPS (earnings per share) growth rate of Netflix is at 90.2%, while the one-year EPS growth rate of the S&P 500 Index (IVV) (IWM) is at 14.2%.

According to Julian Robertson, the company has good management. Netflix’s stock price performed in the last one year increased Robertson’s interest in the stock.

In the next part of this series, we’ll look at Tiger Management’s largest holdings as of June 30, 2017.

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