This article can be found in the MyWallSt App, alongside an audio companion. Sign up today for a free account and get access to dozens of expertly written articles and analyst opinion pieces every month.
As much as it pains me to say, Netflix's most recent quarterly report left much to be desired. Since its transition to a streaming service, subscriber growth rules the day so it makes sense the stock should dump the first time it turned negative.
There are many reasons for this, namely: inflation, market saturation, and competition.
However, the severity of the stock's drop also triggered every Tom, Dick, and Harry to come out of the woodwork to express why they believed Netflix was on the brink of collapse. The primary culprit was one I hadn't considered: terrible content.
This got me thinking: "is Netflix's content getting worse?" Because if it is, that might just ruin my investment thesis which hinges upon Netflix's first-mover advantage, high-quality original content brand, and dedication to local programming for foreign markets. To me, this makes Netflix the default streaming choice, but if their central product is not up to scratch, that could be a huge concern.
So, I took a look at Netflix's content and plans for the future and created a guide for management to get back in customers' good graces and bring in new subscribers. This also forms a handy check-in for investors who may be worried about Netflix's product in these depressing times...
- New stock picked every week out of 60,000 worldwide
- Ten Foundational stocks to hold until 2034
- A library of 60 stocks with analysis
- 10 year Track record of performance
