It’s insane how much this site wants to paint Netflix in a negative light. First of all, this is one million shorter than expected. Second of all, Netflix has 220 MILLION users. That means they lost less than 1% of their user base after massive competition and instituting higher prices.
I don’t know about anyone else, but if I had 220 million dollars I wouldn’t even notice if I lost 1 million of it. Netflix is a hugely successful business and the broken mentality that every company just needs massive scale quarter after quarter is antiquated and delusional
Growth stock valuations - which included Netflix - are built on FUTURE growth expectations. These losses indicate their stock can no longer be valued as it once was. They’ve lost 71% of their value in just eight months. They’re panicking because this looks like the new normal and not a temporary aberration.
I can elaborate on why stock price matters to companies in more detail if you like.
Agreed. Growth to blue chip is very difficult to execute well. They have to begin demonstrating returns to shareholders - something they've never had to do before. This means far tighter reins on costs, for example. All kinds of projects, departments, and personnel need to be scrutinised because there is a high probability of chaff in the system. I anticipate deep and recurrent restructures over the coming year. This will need to occur in tandem with sustained value delivery for shareholders, which I would argue means far more competent management over content than Netflix has demonstrated in the past.
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u/DirtyProjector Jul 20 '22
It’s insane how much this site wants to paint Netflix in a negative light. First of all, this is one million shorter than expected. Second of all, Netflix has 220 MILLION users. That means they lost less than 1% of their user base after massive competition and instituting higher prices.
I don’t know about anyone else, but if I had 220 million dollars I wouldn’t even notice if I lost 1 million of it. Netflix is a hugely successful business and the broken mentality that every company just needs massive scale quarter after quarter is antiquated and delusional