There hasn’t been a more rollercoaster of a story than watching the rise and quasi-fall of Netflix.
We knew that once all the other providers started seeing the kind of money Netflix was bringing in with streaming – it wouldn’t be long until they all started jumping on the bandwagon.
Streaming changed the game…
And Netflix was at the vanguard of the movement.
However, ever since Disney, Amazon and a HOST of other companies have their own streaming apps…
Netflix has found itself in a battle for relevancy.
Its original content – once a driver of new subscriptions – has seemed to have stalled, or worse…
As some of the newer shows have flopped.
Of course, people expect a few misses when you have a LOT of hits…
But there have been a lot more misses as of late – and this downslide seems to have many investors wondering if the jig is up for the company.
Well, if that’s what they thought before the last earnings report…
They’re DEFINITELY thinking that now.
Now, I’ve got to admit – there’s a lot about Netflix (NFLX) that I like, but to be honest…
It seems like the company is ice skating uphill.
It seemed to have issues finding its footing – and the recent numbers seem to back that up.
Recently, Netflix spilled the beans on its latest financial report – and while it wasn’t a total disaster – it definitely wasn’t anything to get excited about.
So, let’s start off with some of the good…
Even though Netflix has been acting like the villain lately – cracking down on account sharing to pump up its user numbers – it has been a hero to its numbers.
Even though people thought it would be a death knell for the company – it’s actually done the opposite.
Data showed a surge in new subscribers in the US after Netflix started warning about the crackdown…
Managing to rope in a whopping 5.9 million new subscribers last quarter – which is more than double what the analysts predicted.
But there’s a catch…
Its revenue fell short of expectations.
Turns out – it slashed prices in some markets and got tangled up in some foreign exchange rates.
Then, to make matters worse – its forecast for the future was worse than expected.
All of which have left investors feeling a bit cold.
In fact – they let Netflix know exactly how they felt – as the news caused shares to tumble by 6%.
Currently, Hollywood is going through a rough patch…
With workers going on strike over their pay – joining the writers who have been on strike for a while – means that US studios have hit the pause button on their productions.
But fear not because Netflix has global production capabilities – its saving grace is the fact that it has content coming from all over the world.
So, even if Hollywood is going dark…
Netflix can keep churning out those binge-worthy shows and movies.
It’s like it has the magic touch – even when times are tough.
Though, that may not last too long….
As the world’s economies are still on shaky ground – with people are tightening their belts.
But this may not be a BAD thing for Netflix – as just like during COVID – when money is tight, folks are more likely to cozy up on their couches and get their entertainment fix from Netflix.
Will it come back from this?
Time will tell…
But if it does – and it becomes a profit opportunity – odds are GorillaTrades members will be amongst the first to know.
Our trading algorithm is based on data and numbers…
And if Netflix has the numbers behind any stock movement – it’ll show up in our trading matrix.
If you want to be there to profit when and IF it does – I’m urging you to become a member of GorillaTrades today.
We’ve been in the game a long time…nearly 25 years
That’s because we’ve earned the trust of both those we service – and our peers.
You don’t stay in this business long if you’re not good at what you do…
And our longevity speaks for itself.
We’d love to have you along for the next round of recommendations…
We make the process so much easier.
The choice is yours…
Either way, keep an eye on Netflix – its story isn’t over yet – and it’ll be interesting to see where it goes from here.
“Companies rarely die from moving too fast, and they frequently die from moving too slowly.” – Reed Hastings