Netflix (NASDAQ:NFLX) is extending its gaming services to include televisions, computers, and mobile devices, building on its addition of mobile games in 2021. The company has begun beta testing for select members in Canada and the U.K., providing access to games on certain TVs and PCs/Macs through Netflix.com on compatible browsers.
The initial games being tested are Oxenfree from Night School Studio, a Netflix Game Studio, and Molehew's Mining Adventure. A smartphone controller app has been introduced for TV gaming, while PC/Mac users can play using a keyboard and mouse. The expansion of TV gaming will be facilitated on devices from partners such as Amazon (NASDAQ:AMZN) Fire TV, Chromecast with Google (NASDAQ:GOOGL) TV, LG TVs, Nvidia (NASDAQ:NVDA) Shield TV, Roku (NASDAQ:ROKU) devices, Samsung (KS:005930) Smart TVs, and Walmart (NYSE:WMT) ONN.
Netflix's current emphasis on mobile gaming is clear, but the company plans to expand beyond iOS and Android platforms. It aims to create games based on popular franchises like Squid Game and Black Mirror. In addition to this, the company has engaged in discussions about licensing a game from the Grand Theft Auto series with Take-Two (NASDAQ:TTWO).
These advancements come at a time when Microsoft (NASDAQ:MSFT) is acquiring Activision Blizzard (NASDAQ:ATVI) for $69 billion and there's been a slight uptick in NFLX shares. According to InvestingPro data, Netflix's market cap sits at a substantial 159.49 billion USD, with a P/E ratio of 37.52 indicating a high earnings multiple. The company's revenue for the last twelve months (LTM2023.Q2) is 32126.45 million USD, reflecting a growth rate of 3.53%. Despite the slight decrease in EBITDA growth (-3.96%), the company remains profitable with an operating income of 5624.42 million USD.
InvestingPro Tips also highlight that Netflix yields a high return on invested capital and that stockholders receive high returns on book equity. This is coupled with the fact that the company operates with a moderate level of debt and its liquid assets exceed short term obligations. However, it's important to note that while the company is trading at a high revenue and EBITDA valuation multiple, its revenue growth has been slowing down recently.
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