Netflix Analysts forget microeconomics principles... Hysteria??
Netflix Q2 2022 Earnings Report: ir.netflix.net/finan...arnings/default.aspx
Key Takeaways of Netflix Earning Report
> Lowest P/E ration in 10 years of operating.
> Revenue is UP 2.06% from last quarter.
> Revenue is UP 9.8% from Q2 of 2021
> Operating Margin of 25.1% is UP 19.1% from the last 4 Quarter average.
> Diluted EPS of $3.53 is UP 25.6% from the last 4 Quarter average.
> Global subscriptions is 6.7% UP from Q1 2021
> Cash Flow is strong.
> Netflix Content is still Great. Streaming market share for total US TV time has risen 0.4% in a 10 month period. That is factoring all the new cheaper competitors entering the Market.
> Net Margin has Been growing at a constant and rapid pace.
With the Financials briefly covered above, here are some of the key thoughts to keep in mind.
Why are financial "Analysts/reporters" trumpeting on about the around 2 million lost subscribers?
The answer is that they have not read the Financials. Their understanding of the streaming market is limited to subscriber count as the sole Variable to take into account. This is the unfortunate result of an incentive, to hold one reason or aspect as the sole driver of the streaming business.
>> The microeconomic 101 principle should have made it clear that as Netflix prices are raised there will be less demand.
>> What is more important is that the FINANCIAL inflows, more than make up for the lost 2 million subscribers.
The demand is Inelastic and therefore the price rise, was the right decision from a shareholder & business perspective.
>>> I will be DCA into this oversold discount, increasing my Netflix position in my portfolio. With the long term in mind, that Netflix is a main pillar in the continuously growing streaming sector<<<
Not financial advice, just an investor/trader's opinion. Who is looking for the best reward to risk In this turbulent market.
Check out my AMD analysis if you liked this Idea:
Key Takeaways of Netflix Earning Report
> Lowest P/E ration in 10 years of operating.
> Revenue is UP 2.06% from last quarter.
> Revenue is UP 9.8% from Q2 of 2021
> Operating Margin of 25.1% is UP 19.1% from the last 4 Quarter average.
> Diluted EPS of $3.53 is UP 25.6% from the last 4 Quarter average.
> Global subscriptions is 6.7% UP from Q1 2021
> Cash Flow is strong.
> Netflix Content is still Great. Streaming market share for total US TV time has risen 0.4% in a 10 month period. That is factoring all the new cheaper competitors entering the Market.
> Net Margin has Been growing at a constant and rapid pace.
With the Financials briefly covered above, here are some of the key thoughts to keep in mind.
Why are financial "Analysts/reporters" trumpeting on about the around 2 million lost subscribers?
The answer is that they have not read the Financials. Their understanding of the streaming market is limited to subscriber count as the sole Variable to take into account. This is the unfortunate result of an incentive, to hold one reason or aspect as the sole driver of the streaming business.
>> The microeconomic 101 principle should have made it clear that as Netflix prices are raised there will be less demand.
>> What is more important is that the FINANCIAL inflows, more than make up for the lost 2 million subscribers.
The demand is Inelastic and therefore the price rise, was the right decision from a shareholder & business perspective.
>>> I will be DCA into this oversold discount, increasing my Netflix position in my portfolio. With the long term in mind, that Netflix is a main pillar in the continuously growing streaming sector<<<
Not financial advice, just an investor/trader's opinion. Who is looking for the best reward to risk In this turbulent market.
Check out my AMD analysis if you liked this Idea:
1) Ratio < Ration
2) 200,000 subscriber loss < NOT 2 million subscriber loss.
Apologies