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Time buy Netflix?

Time to buy Netlix?

We think so and we did. Netflix is down about 70% from its peak. Netflix announced that it lost 200k subscribers last quarter and may lose more this quarter. There are many factors affecting Netflix in the short term. Netflix is spending too much money on productions. The end of COVID has less viewers stuck at home all day. Putin invaded Ukraine and you cannot fight a war and watch Netflix at the same time. Inflation is rampant and people are cutting expenses. Many people share Netflix passwords. There is increasing competition in the streaming industry. A recession is around the corner. Netflix could go belly up, implode, and shut down.

Having said all that, we are willing to risk some dough on the possibility that Netflix can turn the corner and recover some ground in its overall valuation within a year or two. We put some money that we are willing to lose betting on a Netflix come back. We have no clue whether the investment / bet will work or not. We just went for it.  We will revisit this post in about a year to see how things went with Netflix.  In the meantime, we will continue watching its content. 

What about you?  What do you think will happen to Netflix? Do you think the company can survive these rough times and reinvent itself? 

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