The Netflix Brass Reshuffles šŸ’»

The Netflix Brass Reshuffles

Weā€™ve got a Netflix update. The streamer was up on the earnings chopping block yesterday and told investors that while it missed their revenue and profit targets, it beat its own new subscriptions target, but this couldnā€™t prevent a 16% plummet!

Netflix has missed expectations six times in the last seven quarters, but investors wonā€™t usually be told ā€œno.ā€ This was last decadeā€™s best-performing stock, and it just hit a new record of $550. It trades on momentum; when FAANG goes up, Netflix is dragged up by association.

The local bear population has been feeling a lot of pain despite its focus on real financial results, when you would expect the bulls to be slain down for ignoring those numbers. The business is unprofitable. It burns cash to maintain subs, and competitors are incoming.

We can only call on the original intelligent investor to help us understand this, Ben Graham, Buffettā€™s mentor. He said in the 1920s that ā€œin the short-run, the stock market is a voting machine, but in the long-run, itā€™s a weighing machine.ā€ This is a timeless investing quote!

In the long-run, Netflix hopes that two chief executives will prove twice as effective as one, with chief content boss Ted Sarandos set to join Reed Hastings at the helm of the firm. This power duo will be prioritizing investment in content to make sure that Disney and Amazonā€™s shows donā€™t come close; content is key. If content is good, Netflix can turn a profit!

I am not a financial advisor and my comments should never be taken as financial advice.Ā Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

Load More
Get your daily Invstr Crunch

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

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

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 VisaĀ® 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.