Netflix, Inc. operates as a streaming entertainment service company. The firm provides subscription service streaming movies and television episodes over the Internet and sending DVDs by mail. It operates through the following segments: Domestic Streaming, International Streaming and Domestic DVD. The company was founded by Marc Randolph and Wilmot Reed Hastings Jr. on August 29, 1997, and is headquartered in Los Gatos, CA.
What can we share and discuss in this topic?
- Quarterly and annual figures
- Management interviews
- Analyst reports and price targets
- Market developments regarding the company
They are doing very well! But I think they might need some extra side business. If they not doing well for a while I’m the streamingbusiness it’s quite hard for them to comeback instead of Disney or Amazon they have really big business next to the streaming service
I agree! If they have an extra side business that is successful, It will definitely boom a lot more and it is (most of the time) safer. It is a good thing that Netflix is also trying to expand with extra side businesses, so this might come in the following years!
That being said, this is also why Disney has a P/E of 280 while Netflix P/E is 65.
And why Amazon has a 1.7 Trillion USD market cap and Netflix 280B.
from what I am reading, they still have twice as much subscribers as Disney, and more than amazon prime (Amazon is hard to read, because many people don’t use amazon prime for watching but for their packaging service, but Netflix’s average watch time per user is a lot higher if I remember correctly). So they are still far ahead of the competition in terms of numbers (and user friendliness in my opinion!).
I Agree! Netflix is still ahead compared to the rest. Disney a P/E of 280 is not the total story. Cause they loose a lot of money due to their theme parks. I think Disney will become closer and closer each year. But I also think their is place for more than just 1 player! This might be the new PepsiCo/Coca cola discussion! IMO these streaming stocks have a big future ahead and will we see which one of them will be No.1/2 or 3
Yea I 100% agree! I think that as cable television will become less and less of a thing and more people will go to streaming, Companies will start making ‘Streaming packages’ with a bunch of streaming platforms in them. And instead of paying 50 euro’s for cable, they will pay 50 euro’s for a combination of all streaming services. But this is of course speculation!
Also competition is probably the best thing that can happen for the consumer!
Hmmm I never thought about those streaming deals! Really nice vision. I think that is quite possible aswel and yes cable television is a hard case. I see people watch more Streaming services and already stopped watching cable. I would really enjoy those package deals with Prime Disney Netflix Discovery HBO. The future looks bright
Here are the key numbers from Netflix’s first-quarter report:
EPS: $3.53 vs, $2.89, according to a Refinitiv survey of analysts.
Revenue: $7.87 billion vs. $7.93 billion, according to a Refinitiv survey of analysts.
Global paid net subscriber additions: A loss of 200,000 compared with 2.73 million adds expected, according to StreetAccount estimates.
Interesting to see Netflix its first decline in paid users in more than a decade…
They are also cracking down on password sharing which will eventually make the subscribers grow again, especially in the saturated US market.
Down ~20% Today so a good buying opportunity.
I read somewhere that they plan on adding cheaper ad-based subscriptions in addition to the current ones. I personally hate ads, but the business model has worked for many companies.
ye I heard that 3 months ago as well when it went down by 30%…
To be fair, I’m still bullish on Netflix for the coming 5 years. I still believe they are far ahead of any competitor when it comes to having a good product.
Well, they are cash positive now so that is a huge change as well. Will be adding some to my position this afternoon making use of the dip.
I think it would be a great alternative, especially because they have been slowly pumping up the prices.
Well this must be a though day for anyone holding Netflix stock. I myself don’t hold any. Noticed my Spotify stock got hit also. I read the posts and see you all think as a investor you shouldn’t worry too much. Maybe good day for holders to DCA.
If I look at Netflix as a customer. Which I am. They are the most expensive streaming service and the competition is getting better. so I do think this is worrying.
Well, some competitors are running at a loss to try and gain market share (a bit like Epic has been doing in the pc scene). Question is, how long are they willing/able to run at a loss before they have to start charging more realistic prices?
Competition is definitely getting better, although I personally think Netflix is in a league of its own. I just cant compare Netflix to Disney or Amazon, etc atm.
And I think we should get ready for an age of multiple streaming platforms per person. Cable television is slowly dieing out. which if I remember correctly people used to pay 50 bucks for. I saw some polls saying that “the people that have at least 2 / 3 active tv subscriptions is going up y/y”. (Cant say if it was legit, but Looking at how little people use cable tv around me nowadays, this sounds very plausible)
And with a P/E of below 20, the risk you are talking about is already felt by many investors.
Thank god for not having Netflix shares. Feel sorry for the people here having Netflix shares.
I don’t expect them to get back easily. Especially with Disney, I expect Netflix to go down even further. Netflix originals are good but expensive to make. Don’t forget regular series shown on HBO or cable televisions for example still make profit thanks to commercials.
Also, since the pandemic is over. Producers might want to use the cinemas back again. Which could be a problem for them as well.
Netflix now finally starting to openly think about introducing an ad-based tier, like Disney already announced and some other streamers already have or are working on.
I think the expectations streamers had about how profitable they could be with the current amount of competition (and huge spending to churn out content as a result) was a bit unrealistic. Maybe we’ll see the first signs of consolidation in the sector not too far into the future. Most people these days don’t have a problem with holding 2 or 3 streaming subscriptions, but I doubt 4/5/6 subscriptions will ever be the norm.
And hopefully other streamers take note of what just happened with Netflix and finally realise that quality of your content should come first. Not purely the amount of content.
BIGGER isn’t better. BETTER is better.
I think a ad-based tier is a really solid choice for a cheaper version. Curious to see if they will implement this fast, or if it will take years to set this up.
I don’t think 1 person having 4-6 subs will be the norm, However, I do see a future where a middle man offers a package deal of 5-10 popular streaming serves. (Netflix, Spotify, prime, Disney, etc.) The more competition, the more complex it will get for the costumer, So I feel its only a matter of time before a business will come up with a package deal that’s profitable for them, and easy for the costumer. Or at least I hope so, because I’m certainly not going to subscribe to 10 different services! While having one big subscription seems more like the old ‘cable tv’.
Lastly, I honestly think that Netflix has by far the best quality of content, so I really have to disagree with your last statement. I think its just a mix of competition, pandemic, Inflations, war, Netflix upping the price, etc. But content quality is not one of them. Sure they make a lot of mediocre series that are only for specific niches (which isn’t a bad thing). But if you look at how massive some of their main series of the last few years are, I think its disingenuous to say that they do not have quality content in the forefront.
Started a new position in Netflix yesterday! Seems a bit oversold with a pe of 19… Even if they can grow revenue at rates of 8-10%, Netflix looks like a solid investment to me.
I use Netflix mostly to watch Korean dramas, and the quality tends to be very good (for a person that likes Korean dramas).