Another tech “media darling” just tumbled 18% in one day…
Bloomberg reports online video streamer Netflix (NFLX) saw gains in both revenue ($1.9 billion) and profit ($0.09 per share) in the second quarter of the year.
The problem lies in Netflix’s growth trajectory. Wall Street estimated far higher numbers of new subscribers (both domestic and international) than Netflix brought on in the quarter. And that news sent shares into free fall…
| Recommended Link | ||
|
||
| — |
Shares tumbled 18% after Monday’s earnings announcement. Netflix slid to a five-month low.
Now the financial media is already swarming with analysts predicting a deeper skid in Netflix’s sky-high valuation. But longtime Daily readers know we live and die by one of “superinvestor” Warren Buffett’s favorite investment mantras…
To determine if Netflix is suffering a “one-time huge, but solvable, problem,” we turn again to Jeff Brown…
Jeff’s a 25-year technology executive. He’s taken companies public and—as a tech venture capitalist—he’s amassed an unbelievable 44-for-44 win rate. (Nine out of 10 tech startups fail on average.)
Not long ago, Jeff—who lives in Japan—was in town at a special event hosted by another newsletter firm. I pounced on the opportunity to share some expert insight on areas we don’t typically focus on at PBRG with our subscribers…
Here’s what Jeff said about Netflix:
 |
From Jeff Brown, editor, Exponential Tech Investor: Netflix is definitely a buy today—and a long-term hold. It’s a misunderstood company (kind of like Amazon) because it’s still in an incredible growth mode right now.
Netflix has over 80 million total subscribers today (less than 5 million of which are international). By 2020, it should have more than 60 million U.S. subscribers and 100 million international. That’s extraordinary growth in just four years.
Right now, Netflix isn’t profitable. It’s not even generating a positive free cash flow. But here’s what’s important: Netflix is leveraging and investing its money in the company’s global rollout.
Netflix is riding the world’s No. 1 hobby: watching television. On top of that, the company’s an innovator of the monthly subscription model. The model lets you watch as much as you want for one fixed price. It’s allowed people to “cut the cord” on their cable companies. Who needs it when—for just $10 a month—you can access incredible (and sometimes Netflix-exclusive) programming?
The company has also become a programmer in its own right. It’s produced more than 600 hours of award-winning programming in 2016 alone. It’s absolutely at the leading edge of its industry… and it’s growing at an extraordinary pace right now.
Netflix has a lot of upside ahead. It’s a buy for me today.
Reeves’ Note: Jeff’s developed a way to “democratize” venture capital-type investing… providing the best VC opportunities allowed by law for the unaccredited investor. That’s what really got me excited to share this with PBRG subscribers…
He’s compiled a “watch list” of his 20 favorite private technology firms. He leverages his insider industry contacts to determine when the companies will make their initial public offerings (IPOs). Then he sends out lightning-fast updates to his subscribers so they can buy at “day-one” prices.
For example, if you had bought Netflix on day one, you’d now be up 8,066.12%… and growing.
If you’re looking to beef up your speculative portfolio, Jeff’s the insider you want to work with. Learn more right here.
| Recommended Link | ||
|
||
| — |
