Netflix Inc. (NFLX)

Is starting to look at it after NFLX dropped its Warners bid. He likes their business, excellent. If it pulls back 10-20%, he's probably enter. Is still researching it.

She added more Netflix and is slowly adding to it. She only recently started buying it for the first time, because it was always too expensive in PE. They're not buying Warners, so their story is much simpler. There's 20% earnings growth, 12-14% revenue group as operating margins expand and resume buybacks. Trades at a not-cheap 29x forward vs. 35x historic. Is still well below highs.

They're pricing power has been confirmed many times. He likes it a lot.

They will stream MLB's opening night. He sold this before NFLX backed out of the Warners deal and shares jumped. He will get back into this. Live sports will attract more customers, efficiently. During the World Baseball Classic, NFLX streamed it and attracted 31 million viewers in Japan.

They will stream MLB's opening night. Anything under $100 is free money; he just added more. Only this and YouTube are the only entertainment companies worth owning. Is -3% this year, but +17% since they ended the Warners deal. NFLX should grow 10% or more annually, and should earn $5 per share by 2028. A 20-25x PE is justified. He targets $100-120.

Good job backing out of the deal to preserve balance sheet. Strong management. Mature industry. All we cared about 10 years ago were subscription rates. Now they have to see what else can produce revenue.

(10-for-1 stock split 17 Nov 2025)  Volatility all due to the chase for WBD, and now they get a $2.8B breakup fee. Market was concerned about this acquisition. Should recover, expects it to be the long-term leader.

Makes sense this bounced after it bowed out of the Warners bidding. Warners would have diluted a stronger company. Wouldn't buy it now. He sees long-term secular decline in streaming, because young people prefer YouTube, which is twice as big as Netflix. North American Netflix numbers are starting to fade, too.

Did the right thing by making a bid without destroying their balance sheet, and then pulled away. They get a $2.8B breakup fee. Still the largest streamer in the world. Great business, continues to grow.

Given what it paid, Paramount's going to have to do a lot of work to make the acquisition accretive.

It's been through the war and is still alive. Lots of upside. They have a weakened competitor.

She doesn't own it yet, but with the end of the Warners deal (NFLX pulled out), investors can now focus on their strong fundamentals.

Always look to where the fires and disasters are. Street kept selling and selling, and his firm kept buying to a 5% position. Great company, fantastic library, great position. Not the end of the world to not get WBD, and Paramount needs NFLX for distribution. Profits are growing.

The Warners deal has impacted NFLX with concerns over how much debt NFLX would take on. Also, some ask why they want Warners? He thinks Netflix is a great company whether they buy Warners or not. If they don't get Warners, NFLX will receive a break fee. NFLX shares are near 2022 lows. NFLX continues to grow subscribers and revenues in double digits. He sees Warners as a good pick-up because NFLX would drive penetration of HBO and Warners content globally. There's a huge runway. NFLX could still keep movies in theatres or syndicate shows to third parties. 

More of a contrarian play. Lots of noise. Continues to strengthen its competitive positioning. Only platform with true global distribution. Sustainable, positive FCF. Pullback is opportunity. Subscriber trend remains solid. Foray into live events is positive. No dividend.