Netflix Be a Stranger Stock 🎪

Table of Contents

Netflix Be a Stranger Stock

And just like that, 16 billion dollars of market value goes poof. Netflix will try to forget its most recent earnings release, but investors may not let it. While some market participants are running for the hills, others are chill, buying the dip!

Netflix well and truly blundered on Wednesday by fluffing its membership numbers. Although the entertainment streamer beat profit expectations, surpassed 150 million members, and grew revenues by over 25%, investors were hard to please. The market hoped the company could add twice as many new paying members, but the company blamed itself. Netflix said its line-up of content was quiet at best, and that’s what drove less growth. Regardless, the market’s never felt disappointment like this from Netflix, and now bulls and bears roam the same stock.

News of these Netflix numbers collided with a survey into Disney+, a new competitor in the streaming segment that to no one’s surprise, has rallied plenty of interest after its flywheel of 2019 movies. The survey showed the pricing power of Disney, with customers reportedly happy to pay far more than the $6.99 per month price. Amazon Prime Video also bears down on the industry meaning that as Netflix shifts from hit classics to original content, investors see this as a make or break junction for the streamer.

However, others in the market smell opportunity. Separating temporary problems from more systemic ones, the streamer has a stacked content slate for the upcoming quarter. For that reason, Netflix soon expects a reversion to healthy subscriber growth, a “long tail” content stream and a hot brand protecting it from competitors.

10% is a long way down, and the stock is unlikely to plateau at these depths. Whether this be a trap or a punch card investment, you get the feeling that something’s about to happen. Add it to your watchlist!

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.