That is correct, the missing piece is that companies are not valued only on their current p&l they are also valued on the future that is P/E ratio Netflix has

That is correct, the missing piece is that companies are not valued only on their current p&l they are also valued on the future that is P/E ratio Netflix has P/E ratio of around 40, when the stock doesn’t look like it’s meeting the ratio why would I buy the stock at that price, I’d buy it (your point) but at a lower price