Armed Polite Society
Main Forums => The Roundtable => Topic started by: Ben on January 21, 2022, 09:38:08 AM
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Wow. Netflix dropped over 20% - over $100/share - over a 24 hour period. All of big tech is taking a hit this week, but this is a big one. Netflix actually had the audacity to blame covid for it. Covid should have had the opposite effect if everyone was staying home and not working.
I would more likely blame it on everyone and their brother starting other streaming services. Plus Netflix going overboard on their crappy and woke original content. For every series like The Witcher, there are literally 100 crappy "diverse" shows and movies.
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They raised the cost and it cost them.
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I gave up on Netflix a few years ago.
Just wasn't much content there that I wanted.
But... what they said actually makes quite a bit of sense when you look at the new subscriber numbers.
Their expectation for new subs for Q1 this year is 2.5 million, which is about 2/3rds the nearly 4 million they added Q1 2021.
2021 we were still deep into Covid shutdowns and a LOT of companies offering consumed-at-home services like Netflix were overperforming.
Another company that just took one hell of a hit because they couldn't keep up with last year's Covid-based growth based on people being stuck at home?
Peleton.
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Another company that just took one hell of a hit because they couldn't keep up with last year's Covid-based growth based on people being stuck at home?
Peleton.
I do agree that "overperforming" during covid is a valid data point.
As to Peleton, they were always standing on a fragile base. It seems their entire model was built on "covid boredom". Without it, those contraptions of theirs are really just gym toys for google millionaires.
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Netflix and Peleton likely won't be the only ones who take this kind of hit, either.
There are a lot of companies that outperformed because of Covid that aren't going to see that kind of growth repeated, and investors are nothing if not complete and total freaking morons who can't integrate or understand that.
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Note to self... throw a couple bucks at Netflix stock today.
Brad
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Speaking of Peleton...
They've already announced a 2-month production freeze to let stock catch up with demand.
Now the stock price is rising because the CEO is pairing that with talks about layoffs.
https://www.cnbc.com/2022/01/21/peloton-shares-up-after-ceo-says-it-must-right-size-production-levels-consider-layoffs.html
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Note to self... throw a couple bucks at Netflix stock today.
Brad
Better hurry, it's dropped to $383 a share! That's a freaking firesale! :rofl:
Actually, it is something of a fire sale considering that 6 months ago it was over $600 a share...