Sourav Ganguly’s Post

Netflix, the streaming giant that has revolutionized home entertainment, continues to make waves in the stock market. Despite recent fluctuations, the company's strategic decisions and market performance provide a compelling narrative for investors. Recent Share Uptick: Netflix shares have gained momentum, attracting investor interest despite moderate trading volume. Post-Earnings Decline: A 10% drop followed Netflix's recent earnings call, primarily due to management's decision to discontinue reporting net additional subscriptions, despite exceeding earnings expectations. Investment Opportunity: The market's reaction presented a strategic buying opportunity, as the 10% correction appeared to be an overreaction given the company's solid financial performance. Healthy Market Correction: The 10% pullback is seen as a healthy correction, especially after a significant 30% rally since late February. Strategic Shift: Netflix's expansion into live sports and varied content aligns with the anticipated "great re-bundling," potentially transforming the streaming landscape into a structure resembling traditional major networks. Technical Outlook: Netflix shares are in a new volatility rally, reaching new highs. A break above $650 could propel the stock to the next resistance level at $700, indicating a potential 9% upside from today's close. 🚀📈 Exciting times ahead for Netflix and its investors! #Netflix #Investing #StockMarket #Streaming #TechStocks #MarketAnalysis

Netflix just made the news with massive #subscriber gain and a jump in its #stock. The #streaming giant, that was struggling just a year ago, seems to have regained its winning position. It looks like this #streaming #king earned back its crown 👑 by making #strategic, #market and #consumerinsights driven moves, which include: 🌍 Expanding #global reach: While US #subscriptions also grew significantly, much of the recent subscriber growth came from Europe and Asia 🔐 Investing into #security to prevent #password-sharing and borrowing 💲 Introducing a variety of options for subscriptions, with an ability to choose a lower fee for advertising-supported subscription tier ⚽🎮Diversifying #content with #gaming and #sports streaming All this #success and next season of #strangerthings isn't even out until 2025, I believe. 😉

🔍 Netflix's Q3 earnings are on the horizon, and it's a moment that could redefine your investment strategy. With strong subscriber growth and an appealing valuation, Netflix is more than just a streaming service—it's a potential goldmine for your portfolio. 💸 🎯 As we delve into Netflix's promising future, consider this: Their Q3 sales are expected to soar by 14%. If you're pondering whether it's time to invest, think about the proven subscriber growth and the company's strategic market dominance. Are you ready to capitalize on this bullish opportunity? 📊 Dive into why Netflix remains a compelling choice for investors like you. #Netflix #InvestmentStrategy #TechStocks #EarningsSeason

Netflix stock plunges after earnings report, despite strong subscriber growth and profits. https://lnkd.in/dZas5rud Netflix #Techmoonshot #technology #TechNews #Moonshot #StockMarket #earnings #FinancialNews #subscribers #MarketInsights #MarketAnalysis #Profitdecline

How to trade Netflix using options ahead of earnings

This week for my Entertainment Business Capstone Class I delved into an article by Forbes that highlighted Netflix's earnings report for the past fiscal year. To my surprise this article highlighted an increase in Netflix's earnings and growth as the stock itself "soars towards a 2 year high." To preface, during Covid all streaming platforms saw immense growth due to the necessity of at home entertainment, since then streaming has seen a relative decline in users. Fascinatingly, Netflix does not fall under this umbrella, as they reported per Forbes an annual profit of 5.4 billion dollars making it the highest earning year for Netflix this year. As a pioneer of the streaming industry Netflix has historically been the first to grow and first to decline as they set the tone for the streaming industry and with growth like this it shows consumers and the market are buying back into the streaming industry. Forbes mentions that while Netflix had huge growth its 2022 financials has left the stock still recovering despite tremendous growth over the past few year. Bank of America analysts have coined Netflix as the winner of the "streamer wars" but it's hard to tell what this entails for the industry. It could be potential foreshadowing for growth in other platforms, however it could also mean that the over 30% decline on other streaming services has given Netflix a foot up. Regardless, this article shed fascinating light on streaming as it is in the forefront of entertainment mediums. I will be interested to see if 2023 was a maverick year for Netflix or the foreshadowing for fruitful 2024 and beyond. https://lnkd.in/dvxwJQCs Shayne Williamson Esquire Group Inc.

📉 Volatility is part of the journey, not the destination. Take Netflix's stock performance over the last decade as an example. In 2022, Netflix saw a sharp decline, dropping ~70% after its first-ever subscriber loss in over a decade. The company faced intense competition, password sharing issues, and market saturation. But by 2023 and 2024, Netflix had rebounded, thanks to strategic changes like cracking down on password sharing and introducing a lower-priced ad-supported tier. 📈 In business and investing, volatility happens. What truly matters is the trend and the long-term average returns (~19%/year in this case). Instead of panicking during downturns, or exuberance on the upturns, staying disciplined and committed often leads to greater rewards. Even better, a well-diversified portfolio can help offset risks. When one stock or investment asset declines, others may rise, ensuring steady overall growth. Netflix’s recovery is a reminder that short-term challenges shouldn't overshadow long-term growth potential. 🚀 #Investing #StockMarket #LongTermGrowth #Netflix #BusinessGrowth

Netflix Insiders to Sell Up to $18 Million of Stock Two long-serving Netflix directors each plan to sell about $9 million of shares of the streaming service as they trade at a record. Netflix stock as of late has been setting all-time-high prices, including Monday when it reached $773 in intraday trading. Strong third-quarter earnings, reported Thursday, were the latest upbeat news for the company. Richard Barton adopted on July 26 a so-called Rule 10b5-1 plan to sell up to 12,062 Netflix shares through Dec. 31, 2025. Based on the Monday’s closing price of $772.07, that is $9.3 million of stock. Netflix disclosed the adoption of the plan in a form it filed with the Securities and Exchange Commission. Insiders use such trading plans to remove the "appearance" that they might benefit from nonpublic information. The plans execute trades automatically when preset parameters such as price, volume, and timing are met. Barton’s plan covers the potential exercise of vested stock options to acquire stock and the associated sale of shares.  https://lnkd.in/gQRN4pD9

Overall, this was a highly positive report for Netflix on all the more important metrics, which, despite the slight disappointment in future guidance for Q3, should position the company in the right direction toward a solid H2. Mainly, the better-than-expected figures in EPS growth and revenue indicate that the strategy of pushing users into the ad-tier business is just starting to pay off and still has a very high untapped potential. Amid a more competitive backdrop expected for Q3 and beyond, when Netflix's streaming peers are likely to find better macro conditions to pursue faster user growth, Netflix is betting on cashing in where the fat margins are. On top of that, NFLX's strategy could potentially help the company benefit from a weaker US dollar as the Fed approaches its rate-cut cycle, given that it shows a very high potential for growth in markets outside of North America. This means that despite expecting an eventual slowdown in revenue growth, operating margins should remain stable, and cash should keep flowing in - albeit at a slower pace than from last year. Against this backdrop, I would consider the lowering of Q3 guidance an intelligent strategy for keeping excitement put amid sky-high expectations, thus lowering overall stock volatility and attracting the type of long-term investor the company has grown to pursue after the partial crashes of 2022 in the stock. Read all about it on Investing.com: https://lnkd.in/gXajAutT

Revisiting Netflix’s Strategy: The Risk of Changing Metrics Previously, I discussed how Netflix has leveraged subscriber metrics to boost market value. Their recent decision to stop sharing these numbers by 2025 could spell trouble, evidenced by a 9% stock drop. This pivot may disrupt industry standards and investor confidence. Shifting narratives can be challenging. #Storytellers #SubscriptionEconomy #Netflix #OTT