Netflix Inc. (NFLX)

Issued a fiasco forecast yesterday. The CEO used to say that their competition was spare time, not other streamers. Yesterday's quarterly numbers were in-line, but the forecast was a disaster. The competition is in fact other streamers. The market overreacted today, feeling that the streaming audience is finite. Not true.

NFLX vs. DIS Opportunities with each, as they've both pulled back. Both have streaming, and DIS is more diverse. But NFLX is one of the world's greatest businesses. More subscribers to get and lines of business to add. In the next year or so, it will be free cashflow positive. In 5 years, so much free cash, it will buy back stock, make acquisitions, or pay dividends.

On Feb. 19, 2020 it peaked from $390 to $290 a month later after Covid hit. Then, shares bounced back hard to new highs in April. It could happen again with the current sell-off.

He got rid of his stay-at-home stocks, though this one is more part of the secular trend to streaming. Competition with Disney+ and HBO Max. It was getting a bit rich, so he took profits.

Great. Continues to like it. Core of future streaming. Over time, it will get to a point where we all have various streaming packages. By far, the best value for its price. Great company. Good companies will find ways to get bigger, and gaming might be the ticket.

Traditional investment managers compare NFLX to other stocks and find it wanting. The last quarter was good, not great. Undisciplined investors are not bound by the normal rules of investing here. He salutes these investors--they don't care. They simply love the shows, like The Squid Game.

TAN: Tesla, Amazon & Netflix Netflix began by mailing DVDs, then sold content via subscription by pioneering streaming. Bears have whined about them burning through money to pay for programming, but NFLX offers a tremendous breadth of entertainment and disrupted the movie business. Nobody who has shorted NFLX will publicly admit it. Why did this sell off after a good earnings report? NFLX benefited from the Delta variant, because people stayed home. Also, their content has attracted viewers: Seinfeld and the hit Korea show, The Squid Game that two-thirds of all subscribers have watched (it's #1 in 94 countries). Buy this dip. Their headline numbers were solid with revenues blowing out expectations and driven by subscriber growth, which stalled earlier this year and kept the share price flat. Their Q3 subs of 4.4m beat estimates of 3.5m, though Europe, Asian and Middle East accounted for this beat and not North America. NFLX has risen because of sub growth, but North American subs are stagnating. He thinks that in the future the street will expect NFLX to monetize, starting with video games and merchandising. NFLX is up 16% YTD. NFLX's recent rally was merely catching up to FAANG after stagnating most of this year. He sees more growth ahead.

They report Tuesday. They should have a ton of new subscribers, driven by the hit Korean show, The Squid Game.

Been rallying lately There's a graveyard of Netflix shorters. Netflix has been investing heavily in new content. $545-607 is her trading range, and shares are in a bullish formation, so it can go higher.

It's been rallying. He believes in the current break-out. In the past year the stock didn't go down, but flatlined, rested. The bigger the base, the higher the space and this can go higher.