@david299023 Thank you for reading and subscribing. I think Netflix’s multiple today is fair – it trades at 27x 2026 GAAP. But clearly some bears think Netflix has dramatically slowing growth. The entire crux of my argument is that I strongly disagree with this. As I try to make clear in my write-up, a company who just did +16% revenue growth with no new tentpole shows vs. the Olympics is not ex-growth. Netflix still is growing substantially faster than all the legacy media companies today. Tens of billions of dollars in advertising is STILL spent on linear television in the U.S. – a lot of that will eventually make its way to Netflix. NFLX only has $3 billion ad revenue today – that has decades of growth ahead of it. They can grow by raising the ad load per hour, by raising CPMs, and my expanding into more video formats. So I disagree with those who doubt Netflix outlook. Thanks for reading!
Is nflx starting to get priced more and more like legacy media as it starts to get closer to ex growth? And the multiple is starting to reflect that?
@david299023 Thank you for reading and subscribing. I think Netflix’s multiple today is fair – it trades at 27x 2026 GAAP. But clearly some bears think Netflix has dramatically slowing growth. The entire crux of my argument is that I strongly disagree with this. As I try to make clear in my write-up, a company who just did +16% revenue growth with no new tentpole shows vs. the Olympics is not ex-growth. Netflix still is growing substantially faster than all the legacy media companies today. Tens of billions of dollars in advertising is STILL spent on linear television in the U.S. – a lot of that will eventually make its way to Netflix. NFLX only has $3 billion ad revenue today – that has decades of growth ahead of it. They can grow by raising the ad load per hour, by raising CPMs, and my expanding into more video formats. So I disagree with those who doubt Netflix outlook. Thanks for reading!
I agree with you thank you for your response