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

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3:26Talking about another hot investment, Netflix, one of the best performing stocks this year. said that in 2025, well, it said that their ad-supported tier will double revenue this year. So is that a signal that the stock will have a continuous run, or will we see some pullback because it's already gone up almost 300 % in the last couple of years? I mean, they are the preeminent platform to have content on. They are the HBO of our era. And I don't think they get enough credit for how well they have run that business. The fight was pretty good. That was on last weekend. The WWE edition, possibly the UFC edition has helped a lot.

4:21I just think they've run this business incredibly well. And then if they can find a way to double and then maybe even triple in three or four years that as support the tier while having premium content and a premium price. I don't see even I have all the other subscriptions to have Prime and Max or HBO Max, whatever it's called now. No one's better. The only competition probably is Google slash YouTube. And I think there are leaps and bounds in terms of quality of content. So more than have a pullback for sure. But I don't think it's a pullback that will go into correction territory. If I can get them at.

5:00I don't know, probably a 10 percent drop from here, I'll be happy. But this stock has done incredibly well and that management has to get a lot of credit for doing well and just kicking apples back in on that side of the business as well. Yeah. Yeah. I know people were a little confused and we've gone. over this a few times uh a company reports its earnings it beats on every line revenue earnings per share pre-cash flow operating income and the field here beat on all those lines and the company still sees the so the the stock pullback of like five percent um what you have to take into account is where it came from and so if you look at december when it was sitting around 840 currently trading over twelve hundred dollars it's had a nice run up here the problem is um it might have run up too high too fast yeah too fast and so what you'll see is people take profit and that's fine that's part of the game um i don't see a correction happening for it like you said it's the leader in the space it's going to continue to be the leader in the space and i still think it has room for expansion in in terms of yes america is the dominant market but there's still countries there's still areas and regions that do not have this service and you could try to replicate it but nobody's done it successfully uh in terms of competitors yes disney has been there in terms of the amount of subscribers i know netflix is no longer sharing their subscriber count um but disney has a problem and we talked about it and hopefully they'll solve it in terms of live sports and espn and how that was a debt trap for them uh and netflix has solved it in fact they've actually added sports like i said that absolutely it and you know they just signed they just signed max killerman no way what yeah so max killerman is now on netflix for boxing and they're gonna have the number one smart yeah we're just months away from it this it's gonna be by far the most watched fight of all time they have that in their belt obviously they're doing football we'll see what they can do in terms of college sports i know uh tnt signed a college football but who knows what happens with college basketball, the way things are looking.

7:09So, yeah, Netflix is here to stay. I'd be surprised if over the next year they don't split. I was just going to ask, is it time for a split? I mean, because their 52-week low was what, 588, 587? Higher, 1340. Yeah, higher, 1341. I think it may be time for a split. I'm sure the shareholders who have been there for 10 to 15 years may not want it, but it may be time. It might be time. Yeah, it's run that hot. And so now the valuation for the company has risen to a point where who else in the space has that type of valuation? Nobody's near them. Yeah, it might be a time. It might be a time. Rashad, do you think they should split or they should keep the price where it is currently?

7:54Yeah, I think a split would be helpful, especially if it gets close to that$2 ,000 range,$1 ,500. Yeah. Got to look at that for sure. Yeah. Just a couple of stats on Netflix. Free cash flow,$8.5 billion. Let's see. Altman Z score, which I've talked about at InvestFast last year, but it's the probability of them going out of business or bankrupt. 13 out of 100, almost impossible. Beta is 1.62, 52-week high. Like I said, it's 1341. The stock has just been on an absolute tear. Especially in the industry, growth margin is 48%. Their operating margin is 29%. They're netting 24 for a cost heavy. And I remember when the conversation was, is investing in premium evergreen content going to collapse them?

8:47And they just found a way to be better. Yeah, they figured out how to get content at a lower price. You know what it reminds me of? And it's starting to feel like when we were watching video report and it's not good enough anymore. like great is not good enough they're so great yep yeah and to see it pull back after it beat on everything is one of those times where it's like hey yeah they beat i know operating cash flow is something that they were big on and it still beat it yet it only beat it by 300 million 400 million but it's still a beat right if you're not if you're not growing then you're declining and they've grown and so it's just one of those cases is good good enough it's great good enough I'm with them long term I guess my fidelity added 1.3 million shares in March as well too so if you want to see what the whales are doing them and State Street have added shares so maybe a pullback if it ever gets back to definitely 900 range but if we get to

9:55I don't know 1188 which sounds crazy. It should be a good entry point into the stock if you have not been investing into it. And I gave a great ETF and shout out to everybody in EYLU, shout out to everybody that was with us in the class on Thursday. If you look up which ETF has the largest allocation to Netflix, you will find that FDN is a good ETF. Performed well for us this year. If you can't get a share of Netflix at$1 ,200, that would be a nice alternative. An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS-13 gang member from El Salvador accused of murdering a Texas man.

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11:49Mind Games, a new podcast exploring NLP, a.k.a. neurolinguistic programming. Is it a self-help miracle, a shady hypnosis scam, or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This season on Dear Chelsea with me, Chelsea Handler, we've got some incredible guests like Kumail Nanjiani. Let's start with your cat. How is she? She is not with us. Okay, great, great, great way to start. Maybe you will cry. Ross Matthews. You know what kids always say to me? Are you a boy or a girl? Oh my God. All the time. That's so funny. I know. So I try to butch it up for kids so they're not confused.

12:29Yeah, but you're butching it up. It's basically like Doris Day. No, I turn into Bea Arthur. Listen to these episodes of Dear Chelsea on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This show contains information subject to, but not limited to personal takes, rumors, not so accurate stats, and plenty more. What's up, man? This your boy, Nav Green, from the Broken Play Podcast. Look, it's the end of the season. The playoffs are here. But guess what? It ain't the end of your season. You can always tune in with Broken Play Podcast with Nav Green on the Black Effect Podcast Network.

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