Qualitative Analysis:
Netflix's stock price is currently overvalued.
Why?: People are self-isolated during this crisis. "The streaming giant has been holding up amid the market volatility caused by the coronavirus. Social distancing encouragements and "shelter-in-place" mandates across the world have locked people indoors." With divergence to lower gas prices, many people rely on essential workers to boost the economy by reducing the death toll in many countries across the globe. Until the global economy is "reopened," the majority of children and adults will continue their normal lives to try to avoid the idea of this crisis to occur again and blame the current governments; causing the usual political hoopla of conspiracy theories while enjoying their latest "10 top recommended series to watch during the crisis."
How Come? Netflix has surprisingly shocked the world to be the world's pet, something to groom and be attached to when the world 'could end tomorrow.' It is starting to release series and episodes on YouTube which is too good to be true, while people are either wishing for more content and quite surprised the online streaming provider is doing a lot for those stressed out knowing how it feels to be an outcast in society. With their goals to being the best in the online market, they actually did beyond their industry to kick Disney in the ass. Forget the Quant reasoning, earnings are obviously great with an increase in the standard deviation of price, but the mathematics would make it too complicated because it's that simple to understand.
Netflix's stock price is currently overvalued.
Why?: People are self-isolated during this crisis. "The streaming giant has been holding up amid the market volatility caused by the coronavirus. Social distancing encouragements and "shelter-in-place" mandates across the world have locked people indoors." With divergence to lower gas prices, many people rely on essential workers to boost the economy by reducing the death toll in many countries across the globe. Until the global economy is "reopened," the majority of children and adults will continue their normal lives to try to avoid the idea of this crisis to occur again and blame the current governments; causing the usual political hoopla of conspiracy theories while enjoying their latest "10 top recommended series to watch during the crisis."
How Come? Netflix has surprisingly shocked the world to be the world's pet, something to groom and be attached to when the world 'could end tomorrow.' It is starting to release series and episodes on YouTube which is too good to be true, while people are either wishing for more content and quite surprised the online streaming provider is doing a lot for those stressed out knowing how it feels to be an outcast in society. With their goals to being the best in the online market, they actually did beyond their industry to kick Disney in the ass. Forget the Quant reasoning, earnings are obviously great with an increase in the standard deviation of price, but the mathematics would make it too complicated because it's that simple to understand.