Two years ago, Netflix was added to the BizNews Share portfolio. Since then the stock has risen 143%. A third of the gain was in the last three months ($500 to $630) so we weren’t alone in eagerly anticipating the release of last night’s quarterly results.
Investors have a tendency to overplay expectations about good news – but in this case, the Netflix share price was solid. Investors were happy with the 4.4m net subscriber additions (vs forecast 3.5m) and forecast that will double in the next three months. In post market trade the stock settled back to pre-announcement levels. After the recent run, that’s a good sign.
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There’s a lot to digest in the Netflix letter to shareholders but three highlights are worth mentioning here:
* The make-local, deliver-global content strategy delivered a home run this quarter with Korean-made Squid Game, released Sept 17, already Netflix’s most watched TV show ever. It’s been watched by 142m of the 214m subscriber households and is #1 in 94 countries.
* Netflix content received its highest accolade yet, winning 44 Emmys, the most ever by any single network in a season of television. It ties CBS’s tally for 1974 when there were only three US television networks.
* The company believes there’s still a long growth runway. In the company’s largest penetrated market (US) Netflix is still under 10% of television screen time, the metric it watches most. In other geographies its share is far lower.
I’m a (very) happy shareholder. Trust you are too?
More for you today (click on linked headline to access) –Â
* If you’ve had the opportunity to listen to the Jordan Peterson podcast referenced here last week, you’ll appreciate BizNews published a Mailbox from PANDA which you can read here. The silencing of PANDA’s voice makes harrowing reading when, as Peterson avers, open-minded debate on Covid-19 is most needed.
* Netflix reports jump in users, calls Squid Game its most popular show ever. The full report on last night’s quarterly earnings from our partners at the WSJ.
*Â First Bitcoin Futures ETF rises in trading debut. ProShares Bitcoin Strategy ETF rose nearly 5% following its closely watched launch. It offers a low ticket entry into the leading cryptocurrency (one Bitcoin now costs over R900,000).
* PS A reminder the next BizNews share portfolio webinar will be held at noon on Tuesday. Only for Premium members. Click here to register: https://attendee.gotowebinar.com/rt/3785234117773097230.
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