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Netflix is now worth more than $100B

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Re: Netflix is now worth more than $100B

#161
post #87

Earlier quoted context omitted.

Sustained 3% US GDP growth is overly optimistic. We have 0.7% population growth, and no obvious major investments. The computer boom is mostly over with the low hanging fruit taken. Prior to that we had IC engines and electricity, but nothing on the horizon seems to have that kind of potential to radically reshape society. And to double the economy every 25 years you need regular dramatic shits. PS: Look at the past…

> he computer boom is mostly over with the low hanging fruit taken. Prior to that we had IC engines and electricity, but nothing on the horizon seems to have that kind of potential to radically reshape society. And to double the economy every 25 years you need regular dramatic shits. Then the next revolution happens. I'm sure people were pessimistic during periods of lesser innovation before electricity, telephone, p…

That's where Peter Thiel screwed up in his pessimistic premise about flying cars vs tweets (used as an illustractive example of course).

At the same time Thiel was making that claim, CRISPR, AI, robotics, VR/AR, blockchain/crypto-currencies and a massive general leap in automation were working their way into the economy. We're also about to take a leap forward when it comes to space tech and transportation improvements (from electric vehicles, electric planes, to hyper-loop and subterranean tunnel transport, those are all likely only the beginning of a new generation of transport tech; the power of combining electric vehicles + radically better software + lower cost, will be vast and will remake every nation). To add to all of that, China throws a big X factor into the global economy, they'll add additional spark to invention/innovation, accelerating competition and improvement between the US-Europe-Asia (Thiel's observations apply primarily to a time range when China was dirt poor, as recently as 1994 they had a mere $500b in GDP).

What's more important, flying cars (which are wildly impractical even if you can do it well), or curing Hepatitis C? We did the latter at the same time Thiel was expressing his pessimism. At least 70 million people have Hepatitis C world-wide. Flying cars are a joke by comparison to the extraordinary scientific accomplishment of wiping out HepC over the next two decades. Thiel set up his bold premise at exactly the wrong time.

Re: Netflix is now worth more than $100B

#162
post #87

Earlier quoted context omitted.

Sustained 3% US GDP growth is overly optimistic. We have 0.7% population growth, and no obvious major investments. The computer boom is mostly over with the low hanging fruit taken. Prior to that we had IC engines and electricity, but nothing on the horizon seems to have that kind of potential to radically reshape society. And to double the economy every 25 years you need regular dramatic shits. PS: Look at the past…

> he computer boom is mostly over with the low hanging fruit taken. Prior to that we had IC engines and electricity, but nothing on the horizon seems to have that kind of potential to radically reshape society. And to double the economy every 25 years you need regular dramatic shits. Then the next revolution happens. I'm sure people were pessimistic during periods of lesser innovation before electricity, telephone, p…

There's quite a bit on the horizon with potential to reshape society. Self-driving cars is perhaps the most obvious example, and the underlying technologies of computer vision and deep learning seem likely cause automation revolutions in a number of other fields.

Re: Netflix is now worth more than $100B

#163

Earlier quoted context omitted.

If netflix doesn’t pay a dividend, does a P/E analysis still make any sense?

Yes. Any public company must ultimately pay a dividend to be valuable. Edit: All of my responders are ignoring my use of "ultimately". A company can certainly invest in growth, but growth only matters if the company eventually returns money to shareholders, and the only way to do that is a dividend.

False. Berkshire Hathaway has no dividend.

Re: Netflix is now worth more than $100B

#164

Earlier quoted context omitted.

If netflix doesn’t pay a dividend, does a P/E analysis still make any sense?

Yes. Any public company must ultimately pay a dividend to be valuable. Edit: All of my responders are ignoring my use of "ultimately". A company can certainly invest in growth, but growth only matters if the company eventually returns money to shareholders, and the only way to do that is a dividend.

Berkshire Hathaway (Warren Buffet's company) is valuable yet does not pay dividends.

https://www.investopedia.com/ask/answers/021615/why-doesnt-b...

Re: Netflix is now worth more than $100B

#165

Earlier quoted context omitted.

Not really, it indicates how long if nothing changes over the long term. Which never happens. Netflix is growing very rapidly which makes P/E all but meaningless for "how long" questions.

You are right. Today it represents just an expectation. On future, the P/E will decrease and stabilize after the company make profit and consolidate.

It doesn't really even represent an expectation because nobody expects their financials to stay the same. Forward P/E fits that bill a little better.

Re: Netflix is now worth more than $100B

#166

Finding Netflix fairly frustrating these days. Despite their runaway success they haven’t really done anything to change the Hollywood model. 99.9% crap with a sprinkle of watchable content. And despite the hoards of engineers and machine learning wizards they employ, discovery and interface has regressed in their product. Only reason I haven’t canceled yet is avoiding the hassle of going full torrent/YouTube.

It is amazing to me that they offered a superior interface by any measure back in the DVD days. The AppleTV interface for Netflix is a disgrace. I don’t understand how they have all of these brilliant engineers, yet make an interface worse than what Spectrum provides.

What exactly are you looking for?

Re: Netflix is now worth more than $100B

#167
post #11

Wonder why Q4 had such a big bump but Q1 2018 seems to be dropping back down to prior levels. Is this just people purchasing subscriptions at the holiday? Discounts? Special content?

Q4 is always big because people get new Netflix capable devices for Christmas.

Getting a device alone is not enough, they need to sign up too! And most devices comes with Hulu, Amazon, HBO, Fandango and a ton of other media apps.

Re: Netflix is now worth more than $100B

#170

The entire stock market feels like its in a bubble. Netflix stock gained more than 25% in the past one month. Their free cash flow (FCF) has been negative every single quarter and will be for many quarters to come. Stocks trade based on discounted cash flow(DCF). Netflix however produces no material return for investors and still majority of the analysts keep putting higher and higher price targets, its like they are…

I came here to say this as well. The entire market is in a feeding frenzy. Theres simply no way this can continue. I've made 10% returns this year on my whole-market mutual fund since Jan 1.

It's tough to go back to the stock market after bitcoin's daily 10% increase this fall. Might be wise to take 10% and invest in some coin.
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