Thoughts on $NFLX earnings

about 2 months ago

"The main risk is that subscriber growth slows as global markets mature. Long term upside will depend on how much pricing power and engagement $NFLX can sustain as competition in streaming stays fierce. The next phase for $NFLX will hinge on how effectively it monetizes its huge user base through advertising, gaming, and selective price increases. If those bets work, today's valuation could end up looking conservative. Overall $NFLX remains one of the most durable growth stories in entertainment, but with the stock already pricing in much of the good news, the bar for near term upside keeps getting higher."

$NFLX reported another steady quarter with revenue up 17%, meeting expectations. Earnings came in below estimates, but the shortfall was due to a one time tax charge in Brazil. Without that, Netflix would have exceeded profit expectations. The company guided slightly higher for the next quarter, pointing to more steady growth ahead. Even after accounting for the Brazil impact, results were only modestly above expectations, which makes the quarter feel a bit underwhelming given how well the stock

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