Weekly Buzz: Why are investors falling out of love with Netflix?
Spoiler: At the end of this post, there is a chance for you to win points!
Happy Monday,mooers! Welcome back toWeekly Buzz, where we review the news, performance, and community sentiment of the selected buzzing stocks on moomoo platform based on search and message volumes of last week! (Nano caps are excluded.)
Part Ⅰ: Make Your Choices
Part Ⅱ Buzzing Stocks List & Mooers Comments Three major indices moveddownward, Russell 2000 Index decreased2.55%last week. Here is the weekly buzzing stock list of last week:
1. TSLA - Buzzing Stars:⭐⭐⭐⭐⭐
Tesla reported its first quarter of 2022 earnings last Thursday, with revenue and profit beating expectations. The earnings report showed that Tesla's total revenue was $18.8 billion, a jump of 81% YoY. TSLA's stock increased2.04%to $1005.050 for the week. ● Mooers comment @TeslaSmurf: $Tesla (TSLA.US)$Many Tesla investors are worried about Elon buying Twitter. Don’t worry: he will take it private, clean the company, restore the freedom of speech, set a profitable business model and take it to a new IPO in 2-3 years making a shit-ton of money. Read more >>
2. NFLX - Buzzing Stars:⭐⭐⭐⭐
Netflix revealed in its latest earnings report that its subscriber numbers fell for the first time in more than 10 years, and it lost 200,000 net subscribers in Q1, well below its guidance of adding 2.5 million subscribers. Its share price fell by36.82%and closed at $215.520. ● Mooers comment @SpyderCall:I guess we are headed here $SPDR S&P 500 ETF (SPY.US)$This is the only thing i could concoct with my meager charting brain. it looks a little sloppy but its all i got. im watching this area. Surprisingly$Netflix (NFLX.US)$is doing good while spy is in waterfall mode. i guess Nflx cant fall forever
Last week, The Batman became available for streaming on HBO Max after only 45 days in movie theaters. The change in the distribution model was having an industry-wide ripple effect. Last Friday, its stock price closed at $16.520, with a weekly decline of8.32%. ● Mooers comment @Peanny: $AMC Entertainment (AMC.US)$Good Morning; I’m remembering; The only thing that matters is #1. Margin Calls, #2. Liquidations and #3. Covering. The stock price doesn’t matter until these things happen. Holding … AMC
4. MULN - Buzzing Stars:⭐⭐⭐⭐
Mullen issued a press release last Monday stating that it would begin producing electric vehicle batteries at its plant in Monrovia, California. However, the share price of MULN closed at $1.480, with a weekly drop of31.48%. ● Mooers comment @Theresa P: $Mullen Automotive (MULN.US)$just so you know some brokerage firms such as Robinhood are only allowing this to be purchased with cleared funds so it must be getting very hard for them to get shares.
5. VERU- Buzzing Stars:⭐⭐⭐
Individual investors own the largest stake in VERU, with 51% ownership. This scale of ownership gives public investors some collective power but also bears a high risk of loss. The shares of VERU declined25.02%last week and finally closed at $11.210. ● Mooers comment @Muu Muu:Veru Option Alert $Veru Inc (VERU.US)$how to interpret this Veru Option Alert? I am keeping some with pricr at $14, what this meant to me? Veru Option Alert: May 20 $17.5 Calls Sweep (14) near the Ask: 494 @ $0.75 vs 4617 OI; Earnings 5/11 Before Open [est] Ref=$12.62
6. TWTR - Buzzing Stars:⭐⭐⭐
Elon Musk has prepared $46.5 billion to buy Twitter. If Twitter's "poison pill" is in place, Musk will ultimately be unable to finalise the takeover bid. Its share price closed at $48.930, with a weekly growth of8.54%. ● Mooers comment @Aydin Yilmaz: I've heard about the offer by Elon Musk, but I wasn't aware that the acquisition would be done via$Tesla (TSLA.US)$. If the goal is to take$Twitter (Delisted) (TWTR.US)$private, why would Elon be acquiring it through a publicly traded company?
New records for natural gas prices pushed Camber Energy shares up by more than 20% last Monday. Nevertheless, the price of CEI closed at $0.830, with a weekly fall of4.62%. ● Mooers comment @Johnsh: $Camber Energy (CEI.US)$Bull flag formation on crude futures. If confirmed oil price will shoot up to 150+ This could give a lot of momentum to CEI if it goes simultaneously with 10-k and merger confirmation
8. AAPL - Buzzing Stars:⭐⭐⭐
Apple closed Friday out in the red with concerns about supply chain imbalances, rising inflation, and impending interest rate hikes. Its stock went down2.12%to $161.790 over the past week. ● Mooers comment @KWinnnnnn: $Apple (AAPL.US)$各人觉得苹果已经在瓶颈期了. 产品已经很难再创新, 业务也难有新的突破...未来随着社会的发展 人口的逐渐减少 电子产品的需求应该也会下降. Read more >>
9. GME - Buzzing Stars:⭐⭐⭐
GameStop announced the date of its 2022 Annual General Meeting, which will be held on 2 June 2022. One of the most important items at the AGM was the potential GME share dividend and split. The price of GME plummeted8.32%to $138.220 for the week. ● Mooers comment @JulianMackie:A Stock Split Won’t Save the Day For GameStop. $GameStop (GME.US)$Following months of steady declines, GameStop “Apes” received some relief in March. A short-lived rally in “risk-on” plays and news of Chairman Ryan Cohen increasing his position in GME stock helped drive shares from less than $80 to nearly $200 in just over two weeks.
Technology-enabled consumer products company Aterian announced the appointment of Anton von Rueden as its new COO. The role will primarily focus on Aterian’s global supply chains out of the company’s U.S operations. The share price of ATER closed at $4.390 with a weekly decline of20.61%. ● Mooers comment @NoFucksFullAuto: $Aterian (ATER.US)$If the chart is not going in the direction you want, flip your screen upside down. If after some time it appears to be dropping again...flip screen again. Repeat until fully satisfied or passed out drunk. Read more >>
Part Ⅲ: Weekly Topic Time to be rewarded for your great insights and knowledge!
This week, we'd like to invite you to comment below and share your idea on: "Why are investors falling out of love with Netflix? "
We will select15 TOP COMMENTSby next Monday. Winners will get200 pointsby next week, with which you can exchange gifts at Reward Club. *Comments within this week will be counted.
Top Comment Technique: ● Fundamental / Technical / Capital Analyses ● Personal Trading Experience ● Any bright insights or knowledge
HopeAlways
:
The total subscription of $Netflix (NFLX.US)$ is shrinking for the first time in a decade. Competitors have brought compelling services to market, and the streaming video pioneer has not been able to keep up. If $Netflix (NFLX.US)$ wants to keep growing its revenues and earnings substantially, its business model may need to change. The problem is that $Netflix (NFLX.US)$ has no ways to expand its revenues beyond increasing its monthly subscription prices. $Netflix (NFLX.US)$ is now facing a growth problem with deep roots that reach back to when it single-handedly dominated streaming. The company chose at the time not to get into theme parks, sports or gaming, and now those options will even be harder for it to pursue. Investors seem to be realising that this growth problem is bigger than it previously appeared.
Syuee
:
$Netflix (NFLX.US)$. shares plunged to their lowest point since January 2018 as investors reacted to the streamer’s first subscriber loss in more than a decade.
After making excuses for horrifyingly bad subscriber losses and guidance, Netflix attempted to offer potential solutions to the company’s dependency on subscription revenue.
One big idea was introducing a lower-priced subscription option that includes video ads in content.
This solution hardly inspire any confidence. Hence, investors are falling out of love with Netflix.
Another suggestion was to charge folks for piggybacking on the accounts of friends and family.
Netflix's moves to monetize password-sharers and roll out an ad-supported tier are highly unlikely to produce meaningful changes.
Netflix never diversified its business. Now, it is certainly paying the price.
At this point in time, it just doesn't make much sense to invest in Netflix with slowing growth and rising expenses, when plenty of other real solid and high quality stocks are still on sale.
HopeAlways
Syuee
:
The weak subscriber guidance is not necessarily a huge negative, but it is much lower than the historical subscriber growth numbers of $Netflix (NFLX.US)$. If this trend continues, it will lead to lower revenue growth over the next few years.
Syuee
HopeAlways
:
While the short-term growth outlook is definitely much dimmer.
There may be still room for long-term earnings expansion as Netflix takes a greater share of overall global video entertainment consumption while progressing to diversify it’s business models.
Revelation 6
:
Netflix has pulled the “Hat trick” of no no’s or blunders that are driving the company down. These were all self inflicted wounds. Like shooting them selves in the foot, three times. It starts off by cracking down on the sharing of passwords. In an attempt to prevent this it made subscribers look at bill and wonder if it was worth price. A lot of the sharing was inter-family and that didn’t go over so well. Then as if to say, that first shot in the foot didn’t hurt, they increased the price of the service. Subscribers were already wondering if it was worth it and now you increase the price? You might as well go step in a bear trap. Taxes, inflation , fuel and food are all up. The CPI shows no relief in sight and you want to raise the price of your service? Netflix is a want, not a need and when it’s time for budget cuts in the family home, chop chop, Netflix ends up on the chopping block. The last thing you want to do is bring attention to yourself during bill paying time in an economy like this. That’s just my thoughts though. In all transparency I have never subscribed to any type of streaming service or cable package. I’ve never watched enough t.v. to justify it. And finally, let the hating start, some of the programming has really embrace the Woke or the Progressive ideology and people are unwilling to have that brought in to the home. They get it shoved in the face everywhere else without choice, but not in their house. They don’t want to watch it and they definitely don’t want their children watching it. They feel that it’s anti-family and it goes against their moral and ethical fiber. Go woke, go broke. Well, maybe not broke, but for sure put a dent in the companies bottom line. I think the company overrated their position in the lives of its subscribers and became out of touch with reality. They listened to a very small part of the population that was screaming the loudest and the moral majority started turning them off. The message can’t get any clearer.
HopeAlways :
102415025 : Hold guys
HopeAlways : The total subscription of $Netflix (NFLX.US)$ is shrinking for the first time in a decade. Competitors have brought compelling services to market, and the streaming video pioneer has not been able to keep up. If $Netflix (NFLX.US)$ wants to keep growing its revenues and earnings substantially, its business model may need to change. The problem is that $Netflix (NFLX.US)$ has no ways to expand its revenues beyond increasing its monthly subscription prices. $Netflix (NFLX.US)$ is now facing a growth problem with deep roots that reach back to when it single-handedly dominated streaming. The company chose at the time not to get into theme parks, sports or gaming, and now those options will even be harder for it to pursue. Investors seem to be realising that this growth problem is bigger than it previously appeared.
Syuee : $Netflix (NFLX.US)$. shares plunged to their lowest point since January 2018 as investors reacted to the streamer’s first subscriber loss in more than a decade.
After making excuses for horrifyingly bad subscriber losses and guidance, Netflix attempted to offer potential solutions to the company’s dependency on subscription revenue.
One big idea was introducing a lower-priced subscription option that includes video ads in content.
This solution hardly inspire any confidence. Hence, investors are falling out of love with Netflix.
Another suggestion was to charge folks for piggybacking on the accounts of friends and family.
Netflix's moves to monetize password-sharers and roll out an ad-supported tier are highly unlikely to produce meaningful changes.
Netflix never diversified its business. Now, it is certainly paying the price.
At this point in time, it just doesn't make much sense to invest in Netflix with slowing growth and rising expenses, when plenty of other real solid and high quality stocks are still on sale.
HopeAlways Syuee : The weak subscriber guidance is not necessarily a huge negative, but it is much lower than the historical subscriber growth numbers of $Netflix (NFLX.US)$. If this trend continues, it will lead to lower revenue growth over the next few years.
Thoth Industries : The age of streaming services with woke agendas is over.
Syuee HopeAlways : While the short-term growth outlook is definitely much dimmer.
There may be still room for long-term earnings expansion as Netflix takes a greater share of overall global video entertainment consumption while progressing to diversify it’s business models.
Revelation 6 : Netflix has pulled the “Hat trick” of no no’s or blunders that are driving the company down. These were all self inflicted wounds. Like shooting them selves in the foot, three times. It starts off by cracking down on the sharing of passwords. In an attempt to prevent this it made subscribers look at bill and wonder if it was worth price. A lot of the sharing was inter-family and that didn’t go over so well. Then as if to say, that first shot in the foot didn’t hurt, they increased the price of the service. Subscribers were already wondering if it was worth it and now you increase the price? You might as well go step in a bear trap. Taxes, inflation , fuel and food are all up. The CPI shows no relief in sight and you want to raise the price of your service? Netflix is a want, not a need and when it’s time for budget cuts in the family home, chop chop, Netflix ends up on the chopping block. The last thing you want to do is bring attention to yourself during bill paying time in an economy like this. That’s just my thoughts though. In all transparency I have never subscribed to any type of streaming service or cable package. I’ve never watched enough t.v. to justify it. And finally, let the hating start, some of the programming has really embrace the Woke or the Progressive ideology and people are unwilling to have that brought in to the home. They get it shoved in the face everywhere else without choice, but not in their house. They don’t want to watch it and they definitely don’t want their children watching it. They feel that it’s anti-family and it goes against their moral and ethical fiber. Go woke, go broke. Well, maybe not broke, but for sure put a dent in the companies bottom line. I think the company overrated their position in the lives of its subscribers and became out of touch with reality. They listened to a very small part of the population that was screaming the loudest and the moral majority started turning them off. The message can’t get any clearer.
Revelation 6 Syuee : Well said.
102089245 HopeAlways : There appears to be more challenges ahead for the streaming company. Competition is getting more stiff now.
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