David Driscoll Netflix Inc. NFLX-Q SELL ON STRENGTH Mar 25, 2025

(Note the short timeframe.)  Until the last couple of weeks, the media sector has held up extremely well. Perhaps investors are thinking this area is not as impacted by tariffs. Correction Feb/March, but already bouncing back.

The chart shows a head and shoulders formation. It's a great, worldwide company that's done many things right. Is up only 5% this year. He likes subscription models.

It recorded a great quarter last week and last January, but hasn't been immune from this ugly market. But it has made up its recent losses and it up 10.84% this year. They reported a solid revenue beat and monster earnings beat. Also, they didn't sound nervous about the future or the economy. but gave strong guidance for this quarter and reiterated their full-year.

Impressed by last week's quarterly results. Cracking down on password sharing is generating more revenue. Innovating by launching ad-supported versions. Geographic expansion. Aggressive investment in content. Has become a big free cashflow story.

Officially classified as a consumer discretionary stock, but he considers it more akin to a utility. A relatively inexpensive indulgence for the value it offers. Difficult macro headwinds would have minimal impact.

Take out your cost basis (take some profits) and let it run.

Then buy a piece of it, a little, then buy more if it goes down. NFLX may be the best-growing stock in the market.

Meets a lot of his criteria but one -- it's not actually a capital-light business. Spends a lot on developing new content. A compounder. Well, and frugally, run. Investors would do well to read about the culture and the CEO. Dominates the space, market leader. Quite a bit of direct competition.

If you got in at favourable prices, stick with it. Strong company. One of the biggest mistakes investors make is that they "interrupt compounding unnecessarily" (paraphrased from Charlie Munger).

The price target was raised today. Is up 36% this year. It's a permanent compounder. They still own the streaming space, are #1. Looks great. Has so many tailwinds. Is recession resistant.

Is the leader in streaming. But you have to be a little wary of film accounting--you put the cash out front, but accountants will amortize that cost over time. So, earnings don't really reflect the true cash impact on an expanding portfolio of new releases. For a long time, NFLX was challenged on a cost basis, nor producing free cash. This is past and are now producing free cash.