To The Moon

$Netflix(NFLX)$Pop will Stop. 

The stock price is slightly too high for my liking. 

At $223, its PE ratio is 20 for a company whose annual growth rate slowed from double digits to single digit of ~9% y-o-y ending June 2022.

$Netflix(NFLX)$PE is the same as $Alphabet(GOOGL)$which has an annual growth rate of more than 20%. But let's see Google's earnings next week. 

I guess Netflix used the oldest trick in the book - Dampen expectations and Surprise everyone at earnings. 

- Declare a disastrous forecast (we expect 2 million subscribers lost in Q2) and beating it (woo hoo! Only 1 million lost!). [Surprised] 

- Currently, Asia pacific (APAC) is supporting subscriber growth, but things don't look good in America and possibly Europe. See plot. 

It's not all doom and gloom though. 

- It still delivers premium content (Netflix originals) like Squid game and Stranger things, amongst many others... if you can find them in it's gigantic content library. 

- The acquisition of Animal Logic, an animation studio this week shows commitment towards improving animation film content and expansion. 

- Ad based package early 2023 will improve revenue. Thanks $Microsoft(MSFT)$for helping. [Grin] 

Ultimately, it has to improve it's stickiness with viewers to compete and stop losing subscribers! [Facepalm] 

There's a reasonable chance. 

Disney+ recent releases for Marvel and Starwars, two big franchises, didn't really hit the target in terms of quality. I like $Walt Disney(DIS)$so they better buck up. 

As the competitive video streaming industry evolves, it's anyone's game henceforth. 

@TigerStars@Daily_Discussion@MillionaireTiger