I Have Enough Confidence in Netflix
The investing crowd is eagerly awaiting today's quarterly release by Netflix. It is going to come near the end of the day. However, let me be peaceful and undisturbed, feeling cool and far beyond the particular facts found in the report. The main reason behind my tranquillity is the strongest ever growth of Netflix in the second half of 2023 since the pandemic time. More than 22 million people signed up for the leading streaming service after its management successfully limited and monetized the sharing of passwords. Last quarter, Netflix has also enlisted even a greater number of its monthly subscribers for its new ad-supported tier. I am sure, this move made it possible at times to increase the money flow from advertising, even if the significant effect may not necessarily appear right now. The blockbuster growth will follow Netflix anyway considering the existing foundation. Consensus data suggested that Wall Street analysts are betting on 5 million new subscribers from January until the end of March, which would be 200% above 1.8 million additions in Q1 2023. Yet, even though Netflix might be having less new subscribers this time, there is no tragedy at all. This could form only a very short-lived market focus, with a potential ability for the share price to lose some steam or even a double-digit of percentage points at a time, but with a prospect of quick recovery to storm the tops again. My personal target for Netflix was re-established at $800 at the end of February, and I feel I should not turn back or stray from the path. I would even buy more Netflix in case of a one-time correction. Otherwise, I would be just calm and happy, following my way, if today's subscribers and profit numbers would satisfy the crowd to heat another jump in price. The trajectory can vary but the destination point would be the same when the pilots checked out there's sufficient fuel to complete the journey.
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