Netflix's Pandemic Boost Is Over -- but Here's Why I'm Not Worried

Motley Fool2021-04-27

Netflix (NASDAQ:NFLX) reported first-quarter 2021 results last week and disappointed many analysts and investors with its subscriber numbers. After adding an incredible 37 million members last year, ...

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Comments

Bossiwei
2021-04-27
Bossiwei
Good
ccwee
2021-04-27
ccwee
good read
Pixiestars
2021-04-27
Pixiestars
That's true... have not heard of anyone subscribing to Disney+ among my friends but all have netflix.
- Chifield:
  chicken and egg. need content (capex) to grow subscriber. but more content means weaker FCF.
oliviaeex
2021-04-27
oliviaeex
Netflix > Disney+
- Ericlam:
  Nice
kk__soh
2021-04-27
kk__soh
Hoho
Lerologiiiii
2021-04-27
Lerologiiiii
Hmmmmm
- Suresh999Replyoliviaeex:
  Good
- oliviaeex:
  hmmmmm
- Suresh999:
  Useful

Leave a comment

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After adding an incredible 37 million members last year, ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/04/26/netflix-pandemic-boost-over-why-im-not-worried/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NFLX","symbol_name":"奈飞","start_time":0,"source_url":"https://www.fool.com/investing/2021/04/26/netflix-pandemic-boost-over-why-im-not-worried/","article_id":"2130312472","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2130312472","pubTimestamp":1619489248,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"After a historic year for the business, there's still a long way to go. 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Furthermore, none of the other competing services spends anywhere close to what Netflix does, cementing its first-mover advantage in the industry as it spreads those costs out over a massive subscriber base. \nTo add to the discussion on competition, in the most recent earnings call, co-founder and co-CEO Reed Hastings highlighted that other, newer services entering the market were not to blame for the subpar quarter. \"Our largest competitor for TV viewing time is linear TV, our second largest is [Alphabet's] YouTube, which is considerably larger than Netflix in viewing time and [Walt] Disney is considerably smaller,\" he said. \nI tend to agree with him. And if newcomers streaming services like Disney+ and AT&T's HBO Max give you pause, then consider this: About 90% of customers to these two services also subscribe to Netflix, while only 20% and 50% of Netflix subscribers are also customers of HBO Max and Disney+, respectively. This demonstrates the value proposition Netflix offers. \nThe final word \nNetflix is still the leader in streaming. As it continues to spend billions on award-winning content, membership will keep rising over time, particularly overseas. Even if the company only adds 9 million total customers during the rest of the year, that would still equate to 50 million over the last two years. Investors should take this pessimism surrounding the stock (and the short-term price drop) as an opportunity to buy shares. \nAdditionally, the company is on the verge of being sustainably cash-flow-positive, with planned share repurchases supporting shareholder returns. 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