So many big "ifs" in the NFLX bull case. The stock has been bid up in anticipation of future revenues from their ad tier and paid-sharing subscriber growth. The promise of both these future revenue streams is yet to be understood, proven and accurately estimated. As an investor, I would not buy it here. As a trader, I would short the stock now.
One analyst on SA said it best a few months ago, “Netflix is a media company in a mature growth stage, and unfortunately, it is being priced like a technology company in hypergrowth.”
If I want to invest in the adtech promise of streaming, I would rather own an SSP or DSP company that earns a piece of the ad revenue pie irrespective of who is advertising and where.
So many big "ifs" in the NFLX bull case. The stock has been bid up in anticipation of future revenues from their ad tier and paid-sharing subscriber growth. The promise of both these future revenue streams is yet to be understood, proven and accurately estimated. As an investor, I would not buy it here. As a trader, I would short the stock now.
One analyst on SA said it best a few months ago, “Netflix is a media company in a mature growth stage, and unfortunately, it is being priced like a technology company in hypergrowth.”
If I want to invest in the adtech promise of streaming, I would rather own an SSP or DSP company that earns a piece of the ad revenue pie irrespective of who is advertising and where.
Cheers!