Quote:
Originally Posted by scho63
But once growth stops and goes in reverse, that's the kiss of death for a high multiple growth stock like Netflix.
A lot of other stocks sold off after market but this morning its only other streamers getting creamed, including, my DISNEY.
I'm down about $24 a share in that ****er.  |
Investors are stupid when they look at growth exclusively (see Wework). Anybody with half a brain should know that Netflix can’t grow forever. There are definitely a finite number of people on the planet to reach.
On the other hand Netflix is also stupid because they shouldn’t have adopted a growth strategy when growth was slowing. It was definitely time to get skinny, and make money or expand into other areas. They doubled down on the growth model. Dumb. Now they have the hard work of getting skinny while trying to rehab their image with investors.
The Silicon Valley / Venture Capital thought of growth at all costs may be really toxic out there.
Re: Disney. I should try to find their call, and see what their projections are. If they’re leaning into streaming platform they probably should take a haircut but They should be getting back on track with parks reopening and that revenue hitting the 10k. But there might be a stay away factor after the leak of the woke stuff. IDK.