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?? They're profitable and they made 4.5B in net income in 2022. 2023Q1 they made 1.3B net income. Your analysis makes no sense. Please learn more about finance

by m00x 3y ago

?? They're profitable and they made 4.5B in net income in 2022. 2023Q1 they made 1.3B net income. Your analysis makes no sense. Please learn more about finances before commenting on financial matters.

crazygringo 3y ago
Please don't be insulting by telling other people what to learn. And if you look at the quarter before -- 2022Q4 -- they made just $55 million net income, which on revenue of 7.85B is below 1% profit. The overall point is that Netflix is in an extremely volatile and risky industry where it's not in a position to leisurely "extract" more profit because it's a bad guy or something, but rather it's very much been forced into doing things like cracking down on password sharing and introducing an ad-supporter tier simply to stay healthy as a business. Fortunately both of those things seem to be going well, but they easily might not have. If a company's market cap drops 75% in a short period of time, it's making big changes out of necessity, not as a comfortable choice.
- Narkov 3y ago
  It's hard to go broke making a profit.
  - smugma 3y ago
    “‘How did you go bankrupt?’ Two ways. Gradually, then suddenly.” — Ernest Hemingway, The Sun Also Rises
- m00x 3y ago
  I'm not trying to be insulting, I'm trying to help you and other readers. You're clearly ignorant of company finances, and commenting like you know what you're talking about is doing no one any favours. You picked the one quarter they did poorly, before this they made a consistent 1B+ net profit. This is extremely good financials, and not volatile at all. They also have 50B in assets at the moment, including almost 8B in cash.
- lotsofpulp 3y ago
  While your overall point and conclusion is correct, this paragraph is a bad characterization of the relationship between stock price and solvency, hence the replies: >That's a 75% plummet, which is definitely approaching the equivalent of struggling-to-keep-the-lights-on for a modern corporation. That's three quarters of the way to bankruptcy, big red flashing danger lights.

by m00x 3y ago

crazygringo 3y ago

Please don't be insulting by telling other people what to learn. And if you look at the quarter before -- 2022Q4 -- they made just $55 million net income, which on revenue of 7.85B is below 1% profit. The overall point is that Netflix is in an extremely volatile and risky industry where it's not in a position to leisurely "extract" more profit because it's a bad guy or something, but rather it's very much been forced into doing things like cracking down on password sharing and introducing an ad-supporter tier simply to stay healthy as a business. Fortunately both of those things seem to be going well, but they easily might not have. If a company's market cap drops 75% in a short period of time, it's making big changes out of necessity, not as a comfortable choice.

Narkov 3y ago
It's hard to go broke making a profit.
- smugma 3y ago
  “‘How did you go bankrupt?’ Two ways. Gradually, then suddenly.” — Ernest Hemingway, The Sun Also Rises
m00x 3y ago
I'm not trying to be insulting, I'm trying to help you and other readers. You're clearly ignorant of company finances, and commenting like you know what you're talking about is doing no one any favours. You picked the one quarter they did poorly, before this they made a consistent 1B+ net profit. This is extremely good financials, and not volatile at all. They also have 50B in assets at the moment, including almost 8B in cash.
lotsofpulp 3y ago
While your overall point and conclusion is correct, this paragraph is a bad characterization of the relationship between stock price and solvency, hence the replies: >That's a 75% plummet, which is definitely approaching the equivalent of struggling-to-keep-the-lights-on for a modern corporation. That's three quarters of the way to bankruptcy, big red flashing danger lights.