To The Moon

Who does not know Netflix? Not many. A household name literally in the sense of the word as well as in the entertainment scene. And not to forget a member of the FAANG. However, they have been facing subscription growth slowdowns. I mean there are only a certain numberof people on Earth and you will eventually reach saturation point! With declining growth comes declining revenue and profits growth. Andof course the famous password sharing that eats into the coffers. 

Management did well by coming up with solutions and innovated well (shows the importanceof good savvy management) by venturing into ad tech and offered a cheaper tier with the trade off of advertisements. Not too bad a deal for these 'password sharers' who obviously didnot want to spend much and now they can enjoy that by just watching a few advertisementshere and there. Win win for both parties.

I believe this is actually a brilliant move on themanagement side because advertisments can really give a good boost to revenue and jump start their revenue growth. Just look how profitable You Tube is. They managed to pull a rabbit out of the hat. 

As such, Netflix may stay relevant after all andmay hold on to its Faang status. Shares have been discounted quite a bit. This is just my assessment though. I have no interest in acquiring shares of Netflix and just sharing my opinion.