WEBVTT - Netflix’s Wild Run: Will the Hot Streak Continue or Is a Stock Split Coming?

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<v Speaker 2>by P and C Bank, a lot of people think

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<v Speaker 3>Talking about another hot investment, Netflix, one of the best

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<v Speaker 3>performing stocks this year, said that in twenty well, it's

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<v Speaker 3>said that their ad supported tier will double revenue this year.

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<v Speaker 3>So is that a signal that the stock will have

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<v Speaker 3>a continuous run or when we see some pullback because

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<v Speaker 3>it's already going up almost three the last couple of years.

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<v Speaker 4>I mean, they are the pre eminent platform to have

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<v Speaker 4>content on. They are the HBO of our era, and

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<v Speaker 4>I don't think they get enough credit for how well

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<v Speaker 4>they have run that business.

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<v Speaker 1>The fight was pretty good. That was on last weekend.

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<v Speaker 4>The WWE edition, possibly the UFC edition has helped a lot.

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<v Speaker 4>I just think they've run this business incredibly well, and

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<v Speaker 4>then if they can find a way to double and

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<v Speaker 4>then maybe even triple in three or four years, that

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<v Speaker 4>ad support the tier. Why having premium content and a

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<v Speaker 4>premium price, I don't see even I have all the

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<v Speaker 4>other subscriptions to have Prime and Max or HBO Max

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<v Speaker 4>whatever it's called.

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<v Speaker 1>Now, no one's better.

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<v Speaker 4>The only competition probably is Google Slash YouTube, and I

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<v Speaker 4>think there are leaps and bounds in terms of quality

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<v Speaker 4>of content, so more. They have a pullback, for sure,

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<v Speaker 4>but I don't think it's a pullback that will go

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<v Speaker 4>into correction territory.

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<v Speaker 1>If I can get them.

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<v Speaker 4>At I don't know, probably a ten percent drop from here,

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<v Speaker 4>I'll be happy. But this stock has done incredibly well,

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<v Speaker 4>and that that management has to get a lot of

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<v Speaker 4>credit for doing well and just kicking apples back in

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<v Speaker 4>on that side of the business as well.

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<v Speaker 2>Yeah, yeah, and I know people, we are a little confused,

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<v Speaker 2>and we've gone over this a few times. A company

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<v Speaker 2>reports its earnings, it beats on every line revenue, earnings

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<v Speaker 2>per share, pre cash flow, operating income, and beat on

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<v Speaker 2>all those lines, and the company still sees the So

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<v Speaker 2>the stop pullback of like five, what you have to

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<v Speaker 2>take into account is where it came from. And so

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<v Speaker 2>if you look at December when it was sitting around

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<v Speaker 2>eight forty currently training over twelve hundred dollars, it's had

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<v Speaker 2>a nice run up here.

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<v Speaker 1>The problem is it might.

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<v Speaker 2>Have run up too high fast, too fast, and so

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<v Speaker 2>what you'll see is people take profit, and that's fine,

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<v Speaker 2>that's part of the game. I don't see a correction

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<v Speaker 2>happening for it. Like you said, it's the leader in

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<v Speaker 2>the space. It's going to continue to be the leader

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<v Speaker 2>in the space, and I still think it has room

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<v Speaker 2>for expansion. In terms of yes, America is a dominant market,

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<v Speaker 2>but there's still countries, there's still areas and regions that

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<v Speaker 2>do not have this service, and you could try to

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<v Speaker 2>replicate it. Nobody's done it successfully. In terms of competitors, yes,

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<v Speaker 2>Disney has been there. In terms of the amount of subscribers.

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<v Speaker 2>I know Netflix is no longer sharing their subscriber account,

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<v Speaker 2>but Disney has a problem. We talked about it and

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<v Speaker 2>hopefully they'll solve it. In terms of live sports and

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<v Speaker 2>ESPN and how that was a debt trap for them,

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<v Speaker 2>and Netflix has solved it. In fact, they've actually added sports.

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<v Speaker 1>Like I said that absolutely.

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<v Speaker 2>And you know they just signed they just signed Max

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<v Speaker 2>Killerman No way what. Yeah, so Max Killerman is now

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<v Speaker 2>on Netflix for boxing and they're gonna have the number

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<v Speaker 2>one part. Yeah, we're just months away from it. It's

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<v Speaker 2>gonna be by far the most watch fight of all time.

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<v Speaker 2>They have that under their belt. Obviously they're doing football.

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<v Speaker 2>We'll see what they can do in terms of college sports.

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<v Speaker 2>I know T and T signed college football, but who

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<v Speaker 2>knows what happens with college basketball the way things are looking, so, yeah,

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<v Speaker 2>Netflix is here to stay.

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<v Speaker 1>I'll be surprised the next year they don't split.

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<v Speaker 4>I was just gonna ask it is it time for

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<v Speaker 4>a split? I mean because they're fifty two week low

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<v Speaker 4>was what five eighty eight, five eighty seven five? Yeah,

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<v Speaker 4>the highest thirteen forty one. I think it may be

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<v Speaker 4>time for a split. I'm sure the shareholders who have

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<v Speaker 4>been there for ten to fifteen years may not want.

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<v Speaker 1>It, but be time. It may be time. Yeah, it's

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<v Speaker 1>run that hot.

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<v Speaker 2>And so now that the evaluation for the company has

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<v Speaker 2>risen to a point where who else in the space

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<v Speaker 2>has that type of valuation. Nobody's near them. Yeah, it

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<v Speaker 2>might be a time. It might be time for Shaw.

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<v Speaker 4>Do you think that should split or they should keep

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<v Speaker 4>the price where it is currently?

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<v Speaker 3>Yeah, I think I think the split would be helpful,

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<v Speaker 3>especially if it gets close to that two thousand dollars range.

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<v Speaker 1>Fifteen hundred. Yeah, gotta gotta look it at for sure.

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<v Speaker 4>Yeah, just a couple of steps on Netflix free cash

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<v Speaker 4>flow eight point five billion. Let's see altman Z score,

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<v Speaker 4>which I've talked about at vest FASTIL last year. But

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<v Speaker 4>it's the probability of them going out of business for

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<v Speaker 4>bankrupt thirteen out of one hundred, almost impossible. Beta is

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<v Speaker 4>one point sixty two fifty two week high. Like I said,

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<v Speaker 4>it's thirteen forty one. The stock has just been on

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<v Speaker 4>a absolute tear, especially in that industry. Both margin is

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<v Speaker 4>forty eight percent, their operation margin is twenty nine percent.

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<v Speaker 4>They're netting twenty four for a cost heavy and I

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<v Speaker 4>remember when the conversation was it is investing in premium

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<v Speaker 4>evergreen content going to collapse them and they just found

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<v Speaker 4>a way.

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<v Speaker 1>They figured it out to be better.

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<v Speaker 2>Yeah, they figured out how to get content at a

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<v Speaker 2>lower price there, you know what it reminds me of.

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<v Speaker 2>And it's starting to feel like when we were watching

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<v Speaker 2>Video report and it is good good it's not good

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<v Speaker 2>enough anymore.

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<v Speaker 1>Like great is not good enough? They're so great?

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<v Speaker 2>Yeah yeah, And to see it pulled back after it

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<v Speaker 2>beat on everything is one of those times where it's like, hey,

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<v Speaker 2>yeah they beat I know. Operating clash flow is something

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<v Speaker 2>that they were big on and it still beat it. Yeah,

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<v Speaker 2>it only beat it by three million, four hundred million,

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<v Speaker 2>but it's still a beat.

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<v Speaker 1>Right.

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<v Speaker 2>If you're not if you're not growing, then your declining

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<v Speaker 2>and they've grown. And so it's just one of those cases.

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<v Speaker 2>It is good, good enough, It is great, good enough

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<v Speaker 2>that I'm with them long term.

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<v Speaker 4>Good signed Fidelity at a one point three million shares

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<v Speaker 4>in March as well too, So if you want to

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<v Speaker 4>see what the whales are doing, them in State Street

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<v Speaker 4>of add its shares. So maybe a pullback if it

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<v Speaker 4>ever gets back to definitely nine hundred range.

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<v Speaker 1>But if we get to.

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<v Speaker 4>I don't know, eleven eighty eight, which sounds crazy, it

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<v Speaker 4>should be a good entry point into the stop if

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<v Speaker 4>you have not been investing into it.

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<v Speaker 2>And I gave a great ETF and everybody shout. Everybody

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<v Speaker 2>in EYOLU shot everybody that that was what it's in

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<v Speaker 2>the class on Thursday. If you look up which ETF

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<v Speaker 2>has the largest allocation to Netflix, you will find that Fdno.

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<v Speaker 1>It's a good ETF to perform well for us this year.

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<v Speaker 2>If you can't get a share of Netflix at twelve hundred,

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<v Speaker 2>that would be a nice alternative.

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<v Speaker 5>An illegal alien from Guatemala charged with raping a child

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<v Speaker 1>Sponsored by the United States Department of Homeland Security,