People want to engorge themselves in leisure. This is a worldwide phenomenon. Productivity is spiraling lower and everyone thinks they’re celebrities, living lavish lifestyles, spending above their means. When at home, instead of reading a book or learning how to sow or do drywall, men take to the teevee with their wives for entertainment, eating grapes and empanadas, acting like real faggots in the process.
Netflix is at the forefront of this new brand form of hedonism, second only Amazon, who after racking the shopping malls across the country into ruin, have now moved onto the next phase of their business: destroying the productivity of the world.
Year to date, NFLX is +87%, while AMZN is +40%.
On a price to sales basis, NFLX is at 11x. Over in dog eating China, their version of Netflix is a company called iQIYI Inc — ticker symbol is IQ. I am long.
They did sales of $3.01b, +55% YOY. They have 424 million active users on the PC and 51 million paid users, +68%. They operate on a freemium model, like Spotify. They kick lots of ass, is a spin off of Baidu — who still owns 70%, and is protected by a gigantic communist moat that would kill people to protect their business.
While Netflix enjoys a global distribution channel, one can make a strong argument that dominating the Chinese market for entertainment deserves more than a meager 7x trailing sales. If IQ were to trade on par with NFLX, the stock would be $47.
Are you long? If not, is something wrong with your brain?
If you enjoy the content at iBankCoin, please follow us on Twitter
Allow me To offer you some cheap yet incredible entertainment….Cobra Kai on YouTube red. If you we’re a child of the 80s, you know karate kid was all the rage. This mini series is outstandingly written and allow me to say William Zabka should get an Emmy nod for his performance. I promise you won’t be disappointed
Netflix is fucked. I’m really enjoying youtube tv. Stream live teevee, add in Youtube red and endless other movies and shows. Cable tv, is beyond fucked.
What is Netflix. For sure the commie version is a clone. Or is it.
What are you trading long, these days?
Prob WNR.
Ironbird, low budget Netflix movies are better watched stoned. The moar drugs the better.
Indeed brother. They weaponize it all. Opium any day over this steroid weed. But it is LEGAL.
LOL! 😉
The secret to television was a subscription based system with no ads mostly containing reruns, with some “ok” movies and some “ok” original programming go figure. Now if they could only turn a profit. I doubt it. Netflix is ultimately going to be a short, they are cannabalizing ad sales. Free to manipulate our brains the rod serling way how they see fit. Id rather put my money on tesla, ultimately if they can last they have a lithium “gigafactory”.
masteroneass- by “television” do you mean another delivery method, such as cable TV or over-the-air? My view is the audience wants to stream live or on-demand, over the Internet using the device of their choosing. If not Netflix, someone will monetize this customer demand. The totally screwed group is the over-the-air TV broadcast licensee. Those who have built a strong local brand over the years have a chance, but what a press for them to see the audience move on.