NOT A FINANCIAL ADVICE
*Is NFLX good for long term? 200 words* 👇
Netflix can work long term, but it’s not like VOO. It’s a high-conviction, high-volatility stock.
*Why it can work 10-15 years:*
1. *Strong moat*: 270M+ paid subscribers, global brand, massive data on viewing habits. Hard for new players to beat.
2. *Profit focus*: After 2022’s crash, Netflix shifted from “growth at any cost” to cash flow + margins. 27% profit margin now puts it with Apple/Adobe.
3. *New growth left*: Ad tier is early and could add billions. Password crackdown isn’t fully done. Gaming and live events are new bets. If 1 hits, stock gets a boost.
*Big risks for long term:*
1. *Single stock risk*: VOO has 500 companies. NFLX is just one. One bad quarter or CEO mistake can cut stock 30-50%.
2. *High valuation*: At 35-40x earnings, market expects 20%+ growth yearly. Miss expectations and stock drops hard.
3. *Attention war*: TikTok, YouTube Shorts, Disney+, Amazon Prime all fight for screen time. Netflix must reinvent every few years.
*Bottom line:* NFLX is a good long-term _hold_ if you already own it at a good price. But a bad _all-in bet_ for retirement. Keep it under 10% of portfolio. Pair it with VOO/QQQ for stability. If you want sleep + wealth, make VOO the core. Use NFLX as spice, not the main dish.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- terrylimkc·06-22its a useless company for now1Report