Netflix Inc. (NFLX)

Advertising, not subscriber growth, will be their next catalyst, and live sports.

Today, they reported their best quarter ever: 15% revenue growth, subscriber growth 14% and they beat. They can invest grow at the same time. Their library is rich. It's expensive, but streaming live sports over the holidays will be a major catalyst. Has a 30% growth rate which justifies the high valuation. 

They report Thursday. He expects their ad tier to perform well, and Squid Game 2 will be released that could attract new subscribers.

Still likes it, beating all other streamers. One of the cheaper mega-cap stocks at just over 1x PEG. Brand-new high today. Getting closer to overbought in terms of technicals. You could try to add at the 50-day MA around $680-90; if you're really lucky, get it at the 200-day MA around $620. Ad revenue is helping on top and bottom lines.

Their last report stated strong interest from advertisers--they can target ads as well as anyone. Also, NFLX dominates viewing, taking 20% of streaming time and 8% overall of TV viewing time for Americans. We continue to pivot more into streaming. NFLX has beaten the top-line for 4 straight quarters. They deserve the benefit of the doubt.

It is a cheap player but you can use an alternative one. If it can increase prices then you can get some operating leverage but customers may just leave  in that case.

Excellent trend line. Would recommend buying. Strong company with great pattern. Quality company that has consistently had momentum. 

First-mover advantage plus best content library. Rolling out new revenue models. Biggest catalyst to growth is cracking down on password sharing. Market focus is on new subscribers, and they keep beating. In his momentum fund, holding onto this category killer as long as its key performance indicators are intact.

Great idea. 12-month price target of $828, decent runway. Will benefit from model training that's specific to certain industries. So instead of spending 15 minutes trying to find a movie to watch, the algorithms will actually cater to what the viewer's needs and wants are. Great example of where applications will be company-specific on the entertainment side.

Model training is happening right now but he really feels that, looking out 1-3 years, NFLX will be a great beneficiary.

He trimmed it this morning, but remains a large holding. He needed to pare it back. Doesn't care that a hedge fund is shorting it. Shares are a little ahead of themselves.

They remain the stop streaming. They had a head start producing company which is their moat. Other streamers like Disney+ are a distant second. But doesn't know what price to buy at. The PE needs to be a lot lower, though. Loves the company, not the stock.

A great example of a company that has been able to capture leader position in the market. Competition proving inability to compete. Would recommend holding, or buying on share price pullbacks. Ability to generate infinite content very strong. Business model very strong. 

He sold some excess, but likes it. They are the survivor and leader in streaming. They can still leverage pricing. And it's not expensive. It remains a core position.

They continue to hit on all cylinders: ad commitments are up 150% YOY, the ad tier is working, so is the password crackdown. Live sports is also working while their content library is strong.

In 2022, their cash flow went positive, and they will generate $10 billion free cash flow in 2026. They continue to grow revenue at 15%. Strong momentum.