I received an interesting investment note this morning about Netflix…
“ Last week, Divya Narendra sat down for a live conversation with top-ranked SumZero contributor and New Constructs LLC founder/CEO David Trainer, who discussed his research short Netflix (NFLX: US), why he sees greater value in Disney (DIS: US), and New Constructs’ investment strategy and modeling system.
According to Trainer, NFLX is suffering a “death by a thousand competitors” after seeing subscriber growth stall following content spending cuts in an increasingly populated universe of streaming video providers. This, Trainer says, has left NFLX in a Catch-22 situation: “they can have profits or they can have subscriber growth: they can’t have both.” Despite hits like “Squid Game” and “Cobra Kai,” NFLX stock is down over 30% YTD: a long way from its 52-week high of $700.99.”
Death by a thousand competitors…
Good content aggregators will look more appealing over time as consumers are faced with too much choice.
Businesses like Sky just need to grow revenue by diversifying into complimentary services to ensure their livelihood is not dependent on any single content contract (i.e NZR). If they do that then their content aggregation business will have a solid base from which to become even more valuable over time as the streaming wars play out and we see massive fragmentation return to consolidation/aggregation over time.
Well put. Mistatea for CEO (if Ogg doesn't get there first).
Businesses like Sky just need to grow revenue by diversifying into complimentary services to ensure their livelihood is not dependent on any single content contract (i.e NZR). If they do that then their content aggregation business will have a solid base from which to become even more valuable over time as the streaming wars play out and we see massive fragmentation return to consolidation/aggregation over time.
Ladies you need to watch my film "How to Marry a Millionaire" for some pointers.
Just in case you encounter mista Tea. A man of such insight should not be allowed to escape your embrace.
Upward price momentum continuing into the much anticipated earnings. Fully expect the weekly bull flag to play out, however it'll be driven by what's announced.
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