Latest / Earn Your Leisure / Netflix’s Wild Run: Will the Hot Streak Continue or Is a Stock Split Coming?

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Netflix’s Wild Run: Will the Hot Streak Continue or Is a Stock Split Coming? · Earn Your Leisure

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• 1:51
  Speaker 3: Talking about another hot investment, Netflix, one of the best
• 1:56
  Speaker 3: performing stocks this year, said that in twenty well, it's
• 2:04
  Speaker 3: said that their ad supported tier will double revenue this year.
• 2:10
  Speaker 3: So is that a signal that the stock will have
• 2:15
  Speaker 3: a continuous run or when we see some pullback because
• 2:19
  Speaker 3: it's already going up almost three the last couple of years.
• 2:23
  Speaker 4: I mean, they are the pre eminent platform to have
• 2:28
  Speaker 4: content on. They are the HBO of our era, and
• 2:32
  Speaker 4: I don't think they get enough credit for how well
• 2:34
  Speaker 4: they have run that business.
• 2:38
  Speaker 1: The fight was pretty good. That was on last weekend.
• 2:42
  Speaker 4: The WWE edition, possibly the UFC edition has helped a lot.
• 2:46
  Speaker 4: I just think they've run this business incredibly well, and
• 2:48
  Speaker 4: then if they can find a way to double and
• 2:52
  Speaker 4: then maybe even triple in three or four years, that
• 2:54
  Speaker 4: ad support the tier. Why having premium content and a
• 2:56
  Speaker 4: premium price, I don't see even I have all the
• 3:00
  Speaker 4: other subscriptions to have Prime and Max or HBO Max
• 3:03
  Speaker 4: whatever it's called.
• 3:04
  Speaker 1: Now, no one's better.
• 3:08
  Speaker 4: The only competition probably is Google Slash YouTube, and I
• 3:12
  Speaker 4: think there are leaps and bounds in terms of quality
• 3:14
  Speaker 4: of content, so more. They have a pullback, for sure,
• 3:18
  Speaker 4: but I don't think it's a pullback that will go
• 3:20
  Speaker 4: into correction territory.
• 3:22
  Speaker 1: If I can get them.
• 3:23
  Speaker 4: At I don't know, probably a ten percent drop from here,
• 3:28
  Speaker 4: I'll be happy. But this stock has done incredibly well,
• 3:31
  Speaker 4: and that that management has to get a lot of
• 3:32
  Speaker 4: credit for doing well and just kicking apples back in
• 3:36
  Speaker 4: on that side of the business as well.
• 3:39
  Speaker 2: Yeah, yeah, and I know people, we are a little confused,
• 3:44
  Speaker 2: and we've gone over this a few times. A company
• 3:47
  Speaker 2: reports its earnings, it beats on every line revenue, earnings
• 3:50
  Speaker 2: per share, pre cash flow, operating income, and beat on
• 3:55
  Speaker 2: all those lines, and the company still sees the So
• 3:58
  Speaker 2: the stop pullback of like five, what you have to
• 4:02
  Speaker 2: take into account is where it came from. And so
• 4:04
  Speaker 2: if you look at December when it was sitting around
• 4:06
  Speaker 2: eight forty currently training over twelve hundred dollars, it's had
• 4:10
  Speaker 2: a nice run up here.
• 4:11
  Speaker 1: The problem is it might.
• 4:14
  Speaker 2: Have run up too high fast, too fast, and so
• 4:18
  Speaker 2: what you'll see is people take profit, and that's fine,
• 4:20
  Speaker 2: that's part of the game. I don't see a correction
• 4:23
  Speaker 2: happening for it. Like you said, it's the leader in
• 4:24
  Speaker 2: the space. It's going to continue to be the leader
• 4:26
  Speaker 2: in the space, and I still think it has room
• 4:28
  Speaker 2: for expansion. In terms of yes, America is a dominant market,
• 4:32
  Speaker 2: but there's still countries, there's still areas and regions that
• 4:35
  Speaker 2: do not have this service, and you could try to
• 4:39
  Speaker 2: replicate it. Nobody's done it successfully. In terms of competitors, yes,
• 4:44
  Speaker 2: Disney has been there. In terms of the amount of subscribers.
• 4:47
  Speaker 2: I know Netflix is no longer sharing their subscriber account,
• 4:51
  Speaker 2: but Disney has a problem. We talked about it and
• 4:54
  Speaker 2: hopefully they'll solve it. In terms of live sports and
• 4:57
  Speaker 2: ESPN and how that was a debt trap for them,
• 5:00
  Speaker 2: and Netflix has solved it. In fact, they've actually added sports.
• 5:03
  Speaker 1: Like I said that absolutely.
• 5:05
  Speaker 2: And you know they just signed they just signed Max
• 5:08
  Speaker 2: Killerman No way what. Yeah, so Max Killerman is now
• 5:13
  Speaker 2: on Netflix for boxing and they're gonna have the number
• 5:16
  Speaker 2: one part. Yeah, we're just months away from it. It's
• 5:19
  Speaker 2: gonna be by far the most watch fight of all time.
• 5:21
  Speaker 2: They have that under their belt. Obviously they're doing football.
• 5:24
  Speaker 2: We'll see what they can do in terms of college sports.
• 5:26
  Speaker 2: I know T and T signed college football, but who
• 5:30
  Speaker 2: knows what happens with college basketball the way things are looking, so, yeah,
• 5:34
  Speaker 2: Netflix is here to stay.
• 5:36
  Speaker 1: I'll be surprised the next year they don't split.
• 5:40
  Speaker 4: I was just gonna ask it is it time for
• 5:41
  Speaker 4: a split? I mean because they're fifty two week low
• 5:44
  Speaker 4: was what five eighty eight, five eighty seven five? Yeah,
• 5:49
  Speaker 4: the highest thirteen forty one. I think it may be
• 5:54
  Speaker 4: time for a split. I'm sure the shareholders who have
• 5:57
  Speaker 4: been there for ten to fifteen years may not want.
• 5:58
  Speaker 1: It, but be time. It may be time. Yeah, it's
• 6:02
  Speaker 1: run that hot.
• 6:03
  Speaker 2: And so now that the evaluation for the company has
• 6:06
  Speaker 2: risen to a point where who else in the space
• 6:08
  Speaker 2: has that type of valuation. Nobody's near them. Yeah, it
• 6:11
  Speaker 2: might be a time. It might be time for Shaw.
• 6:14
  Speaker 4: Do you think that should split or they should keep
• 6:16
  Speaker 4: the price where it is currently?
• 6:19
  Speaker 3: Yeah, I think I think the split would be helpful,
• 6:21
  Speaker 3: especially if it gets close to that two thousand dollars range.
• 6:24
  Speaker 1: Fifteen hundred. Yeah, gotta gotta look it at for sure.
• 6:29
  Speaker 4: Yeah, just a couple of steps on Netflix free cash
• 6:32
  Speaker 4: flow eight point five billion. Let's see altman Z score,
• 6:38
  Speaker 4: which I've talked about at vest FASTIL last year. But
• 6:40
  Speaker 4: it's the probability of them going out of business for
• 6:42
  Speaker 4: bankrupt thirteen out of one hundred, almost impossible. Beta is
• 6:48
  Speaker 4: one point sixty two fifty two week high. Like I said,
• 6:51
  Speaker 4: it's thirteen forty one. The stock has just been on
• 6:53
  Speaker 4: a absolute tear, especially in that industry. Both margin is
• 6:58
  Speaker 4: forty eight percent, their operation margin is twenty nine percent.
• 7:02
  Speaker 4: They're netting twenty four for a cost heavy and I
• 7:05
  Speaker 4: remember when the conversation was it is investing in premium
• 7:10
  Speaker 4: evergreen content going to collapse them and they just found
• 7:12
  Speaker 4: a way.
• 7:12
  Speaker 1: They figured it out to be better.
• 7:15
  Speaker 2: Yeah, they figured out how to get content at a
• 7:17
  Speaker 2: lower price there, you know what it reminds me of.
• 7:21
  Speaker 2: And it's starting to feel like when we were watching
• 7:24
  Speaker 2: Video report and it is good good it's not good
• 7:27
  Speaker 2: enough anymore.
• 7:28
  Speaker 1: Like great is not good enough? They're so great?
• 7:30
  Speaker 2: Yeah yeah, And to see it pulled back after it
• 7:34
  Speaker 2: beat on everything is one of those times where it's like, hey,
• 7:37
  Speaker 2: yeah they beat I know. Operating clash flow is something
• 7:39
  Speaker 2: that they were big on and it still beat it. Yeah,
• 7:41
  Speaker 2: it only beat it by three million, four hundred million,
• 7:45
  Speaker 2: but it's still a beat.
• 7:46
  Speaker 1: Right.
• 7:46
  Speaker 2: If you're not if you're not growing, then your declining
• 7:48
  Speaker 2: and they've grown. And so it's just one of those cases.
• 7:52
  Speaker 2: It is good, good enough, It is great, good enough
• 7:55
  Speaker 2: that I'm with them long term.
• 7:58
  Speaker 4: Good signed Fidelity at a one point three million shares
• 8:00
  Speaker 4: in March as well too, So if you want to
• 8:03
  Speaker 4: see what the whales are doing, them in State Street
• 8:06
  Speaker 4: of add its shares. So maybe a pullback if it
• 8:12
  Speaker 4: ever gets back to definitely nine hundred range.
• 8:16
  Speaker 1: But if we get to.
• 8:20
  Speaker 4: I don't know, eleven eighty eight, which sounds crazy, it
• 8:23
  Speaker 4: should be a good entry point into the stop if
• 8:26
  Speaker 4: you have not been investing into it.
• 8:28
  Speaker 2: And I gave a great ETF and everybody shout. Everybody
• 8:30
  Speaker 2: in EYOLU shot everybody that that was what it's in
• 8:33
  Speaker 2: the class on Thursday. If you look up which ETF
• 8:38
  Speaker 2: has the largest allocation to Netflix, you will find that Fdno.
• 8:42
  Speaker 1: It's a good ETF to perform well for us this year.
• 8:46
  Speaker 2: If you can't get a share of Netflix at twelve hundred,
• 8:49
  Speaker 2: that would be a nice alternative.
• 8:50
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