THB #123: Netflix Day, 2 of 4: Charts

Down 200k subs worldwide.

If Russia wasn’t shut down, still a disaster with just 500k sub growth worldwide.

There is nothing to be hysterical about here… stock has been wildly overvalued for years. It is not a tech business. It is an entertainment business. Always has been. A grocery story doesn’t become a tech business because they buy the newest cash registers. Amazon is a tech business. Why? They make most of their revenue and profit selling their tech.

$270 a share - which is where Netflix is after-market as I write - is closer to a reasonable evaluation. $120 billion market cap… which also makes the company within the range of a buyer coming in and still not getting a value, but becoming the instant market leader.

Asia is the only market where subs were not lost… but still not good.

And just to keep people scared, the company itself, which projected adding 2.5 million subs this quarter (which led to that plunge) is projecting another down sub quarter, losing 2 million more.

Is that…