This week, we asked the Invstr Community what their opinion is on Netflix’s recent pullback. The winner, by a very slim margin, was the 43 percent of Invstrs who believe that this is just a bump in the road for Netflix that they can soon overcome. This feels like a routine for Netflix investors every year, where the company’s earnings fall short of expectations and the stock collapses as a result. After that, it ends up recovering as the company continues to perform well. Even though this could be astrology or random luck, people do believe Netflix can be grabbed at substantial value here as they are still one of the leaders in their industry, making this a sensible first place vote. In second place is the 40 percent of Invstrs who believe this is a sign of continued struggles for Netflix. Netflix is down 70 percent from all-time highs, a drop we’ve never seen, and the most recent earnings report gave no reason to be happy as they lost 200,000 subscribers for the first time since a decade ago. Password sharing has started to become a major problem, so it feels as if this option should push for first place although the tight margin is validated.
To close out the podium, we have the 17 percent of Invstrs who have their eyes on other parts of the digital world, not focusing on Netflix. It’s easy to argue that this whole streaming area is oversaturated, which is definitely a valid concern, and it looks like Netflix is slowly starting to lose their market share to companies like Disney. This, compared with the risk/reward of other assets in the stock market and crypto, have shifted growth investors’ interest away from the company. It’s surprising that this many people have stopped paying attention to Netflix though, considering it’s a FAANG stock, making this a reasonable third place finisher but the percentage is high.
Keep track of further news on Twitter with the News feature on Invstr in your feed! Have fun and see you next time with more poll results!
The Invstr Team 🙂
