Nope- there is some fierce competition heading their way plus that cash burn is horrifying
Nope
Short answer is no. Reason why... The business model was built on having a movers advantage and moat. Both have deteriorated and will soon be non existent. The competition that is maturing or plans to soon enter the space (Disney, Facebook, Apple, amazon, HBO, Hulu, showtime, time warner, twitch) is going to have a massive impact on the net subscriber number which is what drives the stock up and down. This is just the first Q result where that is shown and will only continue.
facebook?
At this point it is indirect competition as they aren’t creating a traditional streaming service but as they shift to more video curated content for users it will distract users from the likes of Netflix.
Competition Debt ⬇️Subscribers
Sold yesterday and bought back in after hours. They have a huge expansion opportunity in international markets, and the future is going to be multi-provider in the US. They can work with these numbers, although they’ll probably have to scale back content spend domestically just a bit or tweak their marketing spend to keep subscriber counts stable. The media loves to portray the future of our industry as zero sum. There’s no way that’s the case. Reid believes Netflix will peak at 60-80m subs on the US. Saturation in the US market might just be closer to 45-50m when you factor in account sharing. But international is still a huge opportunity for Netflix to expand revenue.
They need to go beyond streaming video.
So FAANG is going to become FAAG?
Always catch a falling knife.
Nope. Going down.
No it’s a dumpster 🔥They have to keep spending more and more not just domestically but also internationally to develop original content. International pricing power sucks in comparison to US. And there is now tons of competition round the corner. Disney HBO etc.
AI man