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Talking about Hollywood deals from the last year often brings to mind big players merging and acquiring others — think Amazon buying MGM (subscription required), the Warner Bros./Discovery merger, the list goes on. Something to keep an eye on amid all of these mergers and acquisitions is the motivation to control IP and content libraries by the largest platforms. I’ll break these categories down to understand what this means for the future of the production world, entertainment M&A and investment in this industry.
The Power Of Content Libraries
Amazon’s acquisition of MGM is a great example of heavy-hitter content libraries driving streaming deals. Instantly coming into ownership of a library of treasured films and series with built-in affinity and fiercely dedicated fan bases — including James Bond, Rocky, The Handmaid’s Tale, Fargo, Vikings and more — seems like any streamer’s dream. Even older content like Legally Blonde and Thelma & Louise — which were also part of the deal — are creature comforts to viewers who are looking for quick hits of entertainment and revel in the familiarity of a favorite cast of characters.
IP And Ever-Expanding Production
Another motivation for these deals is to acquire all content rights and development rights to expand the production of already-beloved movies and TV series. Netflix’s acquisition of the Roald Dahl Story Company will allow the streaming giant to bring stories that have captivated generations of readers and movie fans to a whole new audience, beyond their original applications.
An incredible example of this expanding IP is how the world of Willy Wonka and Charlie in the chocolate factory has now grown beyond the films that have already been released, now bursting into the Netflix-verse with an upcoming TV series. A similar example of expanding IP can be seen in the acquisition of Moonbug Entertainment (subscription required). The new owners now have the ability to expand the Cocomelon world with not just more video content, but also merchandise, gaming and toys — increasing the earnings possibilities exponentially.
The Evolving Platform And Content Relationship
An important distinction to understand is that content is not “king,” rather, as Jeffrey Katzenberg has explained, content is the “kingmaker” and the platform is king. What does this mean for what’s to come in Hollywood? The industry is already seeing examples of content acting as “kingmaker” for platforms with big valuations, creating the environment for engagement and user numbers to soar. It’s been reported that Netflix users worldwide have watched over 2.1 billion hours of Squid Game. That’s got to be worth a lot of honeycombs — $900 million worth, to be precise.
New Metrics For Success
This leads to the most-valued metric as not how big the platform is growing but how well the company is performing and what the outcome of those big audience numbers is. Streamers have figured out that if they own libraries of content favorites, they can increase subscriber counts, which leads to better performance. For example, Netflix stepping up for the rights to Seinfeld, HBO Max licensing Friends, and Peacock ensuring that The Office is available exclusively on Peacock.
With this concept in mind, you can look toward the future of Hollywood deals involving a lot of media companies snatching up known hit-makers like Dick Wolf and Brian Grazer. These producers identify great, marketable ideas and guide the creative direction of content that performs extremely well. The recent acquisitions of Hello Sunshine (Reese Witherspoon’s company) and Bad Wolf (producers of The Night Of, Industry and His Dark Materials) are just the beginning. Streamers want a large number of high-quality products, and purchasing shows from producers with a track record of creating content that’s almost always guaranteed success is an incredibly strategic way to feed that demand.
In-Entertainment Purchases
Do you like that blouse that Reese Witherspoon wore in Legally Blonde? Well, now that Amazon owns MGM, the owner of the film, purchasing that fashion statement might be just a click away. While no plans have been announced, the same Prime Video X-Ray functionality that allows viewers to pause a television show or film to learn more about the actors in the scene seems to be a natural next step for in-show products and purchases.
Trends To Look Out For In 2022:
The convergence of TV and social media. Expect more integration of social media platforms and content with traditional media; for example, take TikTok’s increased presence on smart TVs, and in turn, Roku’s $1 billion budget for original content.
International content will grow. The thought that American audiences shy away from international content or foreign-language content with subtitles or dubbing is not true. Massively popular movies like Parasite and mega-hit television shows like Money Heist demonstrate that Americans are open to international content.
This was fueled by the growth of entertainment economies outside the United States. Creators interested in developing their own content featuring local talent, cultural references and settings are fueling the local productions. As the world and the industry change, audiences will demand the next Squid Game, and studios and networks recognize that it doesn’t have to be in English or even be produced by a U.S.-based company.
Expect IP rights to become more valuable. IP rights are more valuable now than ever, as with more bandwidth and accessibility, more people can be entertained. Studios are making up for lost time during the pandemic, and they are speeding up new movie production and fast-tracking releases to meet the consumer demand for new content.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
The connecting thread of multi-millionaires boils down to one similarity—mindset. These economic actors weave a pattern of unspoken rules that are simply thoughts and philosophies put into action. This is especially prevalent in real estate and with business owners. I pulled together the financial rules and actions that make up the multi-millionaire mindset so you can see how to master it for yourself.
Unspoken Rules In Millionaire Business
One of these unspoken rules is most millionaires have multiple bank accounts to build relationships with institutions. This helps to build the health of their business and aid in long-term goals. Another rule many millionaires follow is investing in real estate—especially after understanding the power of equity.
Another path to success is the awareness that business is more than having a product and selling it; it has many working parts that all need strengthening to function properly. A business can be viewed as a living and breathing body that requires a leg day now and then, and what you put into it determines the results.
Millionaires also know how to take a successful business and leverage it. Often, millionaires have multiple companies because the leverage from each LLC or entity is incredibly valuable. One of these business muscles to work on is business credit. Leveraging credit in any capacity is also what many describe as the Great American Credit Secret. This can start with an Electronic Industry Number or EIN, which acts as a social security number for the business. While you can use your personal credit, which is called a Personal Guarantor (PG), you can utilize your EIN to build strong credit for your business. Oftentimes, a PG is required until a business can stand on its own.
Strengthening Your Business
So, what exactly makes a business strong enough? I believe the most important factor, which takes time and dedication, is age. The older the business, the better. After age, the next factor to consider is income. Keeping detailed records such as bank statements and tax returns (proof of income) will greatly improve approval odds. If strong business credit is the muscle of your company, the organization is the lungs and breath that sustains it.
The next factor is a high PAYDEX score. To receive a PAYDEX score, apply for a D-U-N-S number on the Dun and Bradstreet website. A PAYDEX score runs from 0-100, with 0 being the highest risk of late payment. Simply put, a PAYDEX score is based on how well the business pays its suppliers and vendors. A healthy score is considered 80 and above. Lenders, landlords and suppliers will typically check this score to assess your business, and it is available information for all to see.
The next step is to perform a credibility check on your business. A credit check is the data points that prove a business is legitimate. Some of these factors include a website, business phone number, business address and EIN. This is where you gain trust from not only customers but institutions as well. It is a simple step but should not be overlooked for the integrity of your business.
While it can be easy to focus on the short-term goals of a business, its longevity and success are based on its long-term goals and actions to achieve them.
Since you know that this is the mindset of a millionaire, why not follow their lead?
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
There’s been a lot of news recently about falling margins and cutoffs in financial startups like Robinhood, Mainstreet, Coinbase, etc. Business models of broker-dealer companies have changed significantly over time. Ten years ago, brokers made their money on trading commissions. With Robinhood changing the rules of the game, trading became “free.” In this article, I would like to examine how brokers make their money now.
Traditional Brokerage And Pay Per Transaction
The traditional brokerage business is about building a marketplace where buyers and sellers of securities are connected. In this case, a broker-dealer like Etrade or Robinhood executes transactions for a client and has access to the markets where these deals happen (NASDAQ, NYSE and others). For many years, the overall business model for a brokerage firm has been to manage these transactions for a fee per transaction/trade.
A broker receives the money directly from clients as a fee for an order they complete for them. Fees for retail investors are usually from 0.05% to 2%, depending on the capital volume and trading frequency. Usually, it was about $7 per transaction. This business model is virtually extinct in the U.S. market, where most large brokerage firms, from Robinhood to Fidelity, offer commission-free trading now.
High-Frequency Trading
At the beginning of the century, with the development of high-speed internet and technologies for financial markets, high-frequency trading came into play. In his book, Flash Boys: A Wall Street Revolt, Michael Lewis uncovered alleged front-running practices by some high-frequency trading (HFT) firms, including Citadel. In 2020 FINRA announced penalties against Citadel. They paid $700,000 in fines and made the clients whole, although without admission of any wrongdoing.
Despite the bad press, high-frequency trading and dark pools provide some important features for retail investors: faster deal execution, higher liquidity and tighter bid-ask spreads. The advance in high-frequency trading made a new business model possible—payment for order flow, the one that we know as “free” trading.
Commission-Free Trading Payment For Order Flow (PFOF)
High-frequency trading opened the gates for more creative business models, and one of the greatest examples is the Robinhood + Citadel cooperation. They introduced commission-free trading with payment for order flow (PFOF). Most brokers like Robinhood and Fidelity don’t charge commissions directly from investors but split profits that market makers like Citadel make when quoting bid-ask spreads.
By having the trade flows directed to them, market makers can better predict the trade volume and set bid-ask spreads more efficiently. Retail investors, as it happened before, pay a slightly higher price to buy securities than to sell them. In this sense, the spread is not new. However, PFOF allowed dropping commissions as the main source of income for brokers and made the trading sound more lucrative for retail investors.
To make the market even more attractive for small investors, brokers found a way to introduce fractional shares. Now instead of forking out over $2,000 for a share in Alphabet (GOOG), an investor can buy a fraction of a share for just a couple of dollars.
Margin Trading
At some point, capital inflow slows down, so brokers need to come up with a way to increase return on capital. Margin trading is a logical step to achieving it. A broker loans funds to clients, which allows them to trade more. The more buying power, the more trades are made and the more PFOF brokers earn as an intermediary while also gaining interest on the loaned capital.
Every country has different regulations on how much margin a broker-dealer can provide clients with, and in the U.S., it’s about 50%.
Options And Other Complex Financial Products
With all the evolution we have described above, it’s clear that one day a brokerage company will reach the limit of capital that it can earn per client. Then, the question becomes, “How to increase the overall volume with the same amount of capital?”
And that’s when complex products like options come into play. Many derivatives have embedded leverage in them (option contracts usually represent 100 shares of the underlying stock). For many years, options and other derivatives were mostly hedge instruments for professional traders.
For retail, it became a promoted product on its own, with CNBC reporting that retail investors account for 25% of the total options trading volume, up 35% from 2021. On the one hand, instruments like that have higher volatility and allow retail investors to multiply capital much faster.
On the other hand, it drains the capital faster because of implied leverage and eventually reduces the commission that a brokerage company makes per transaction. It also requires clients to constantly follow the market and actively trade rather than invest. It is very time-consuming and complicated for most; otherwise, if they miss a beat, they might lose a lot of money on their open positions.
Charging For Advice—Not Trading
If a broker-dealer company is not actively trading but instead investing, it can charge for assets under management: Wealthfront, Acorns and Betterment use this model. In this case, clients are focused on mid-to-long-term goals that help to build wealth over time while having less aggressive but more steady returns. That’s why these companies charge a commission for capital allocation and management but not per transaction or other trading activities.
With this overview of the evolution of business models, I wanted to highlight the key differences and adoption of financial products and the companies standing behind them. Financial products are about building new business models and user acquisition channels that eliminate operation costs and boundaries on the money flow. Every aspect of a new financial product should be dedicated to the empowerment of newcomers and giving access to faster, more reliable and advanced “financial pipes” that speed up the financial flow.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
For Americans of a certain age, the word “inflation” conjures painful memories of long lines at the gas station, President Ford’s unsuccessful “Whip Inflation Now” campaign, and the tough choice between paying for food or fuel. Nearly half a century later, surging inflation and the heartbreaking stories of families having to choose between food or fuel once again dominate the news cycle.
The consumer price index (CPI) came out above expectations in May as the year-ago inflation rate rose to 8.6%, its highest value since 1981. The multiple-point increase in the cost of housing, fuel and food prices has been overwhelming for many. Finance business leaders have a responsibility to offer guidance to employees, members, customers and the broader public on how to navigate this economy. Fortunately, leaders, as well as any participant in the economy, can take several crucial steps to stay ahead of the curve.
Make smart choices.
First and foremost, you need to be making smart choices regarding how you manage your disposable income and spending habits. Among the most pressing concerns for Americans is the surging cost of food products. All it takes is a trip to your local grocery store or restaurant to understand the toll that rising meat, vegetable and grain prices are having on consumers.
One of the most helpful things you can do is create a meal plan to avoid impulse buying at the grocery store or relying on takeout during the week. Let me give you an example. I learned that I could save money and eat healthier by planning my meals throughout the week. My breakfast of yogurt, blueberries and oatmeal is nourishing and far cheaper than picking up food from outside on the way to work. I also cut down my habit of purchasing two Starbucks coffees a week, saving me $8 a week or $416 a year.
Americans are also shelling out more money than ever to put gas in their cars. According to one study, the annual rate of gasoline spending by households was $3,800, a record increase from prior years. I have one car that used to cost $25 a tank to fill up—that number has now doubled to $50 a tank.
In many cases, you can’t avoid paying for gas. After all, millions of Americans rely on cars, whether that’s for work, school or a doctor’s appointment. But you can avoid unnecessary spending by making smart decisions about when and how you travel by car. It may seem tough at first, but these small decisions can save you hundreds of dollars in the long run.
The fact is that in an uncertain economic environment, you need to be making smart decisions about how you spend your discretionary income and live within your means. For example, Americans are gearing up for a surge in travel this summer, in part to make up for postponed vacations during Covid-19. But inflation is coming for your summer travel plans, and the rising costs of airfare, dining and hotels are driving down bookings.
The cost of domestic plane tickets alone has jumped 47% just since January, according to one research firm, and prices have remained above pre-pandemic levels for months. It might make sense for you to push back that family vacation if it means going over your budget. The money you save could make it much easier to take your dream vacation later down the road.
While it’s crucial to make a budget that works for you, it’s just as important to be proactive with adjustments to your spending habits. You should audit your budget periodically, as your spending goals will change over time, and you could encounter an unexpected purchase or squeeze on your budget.
Track spending.
Many track spending habits with a budgeting app or a spreadsheet. That’s a great resource to manage expenses you might otherwise not think of. For example, you could be paying for a gym membership or a subscription service you don’t actually use. If you take proactive steps to mitigate the impact of inflation on your wallet, you can save more money and feel more empowered over your financial life.
Inflation is a threat to the economy and your financial well-being—more and more Americans now point to higher costs of living as their top financial problem. But staying on top of your spending habits and making financially responsible decisions will put you in the driver’s seat and give you greater control over your life.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
By 2026, it’s estimated that the global AI in the fintech market is set to grow to $26.67 billion. This is up from an impressive $7.91 billion in 2020. With such an undoubted uptick in artificial intelligence technology, more and more companies are seeking to engage AI for their businesses. The only question is, “how?”
Like all new technology, it can be confusing to those tasked with managing its implementation and which route to take. Even within the credit industry, a subset of the wider fintech movement, there are several options available.
AI Models That Boost Lending
To help bring clarity, these are some of the most frequently used models in the credit industry:
• Application score: This is utilized by lenders to help evaluate how creditworthy an individual is.
• Behavior score: It provides insights into financial behavior so lending providers can better assess loan risk.
• Fraud score: This helps to weed out potential fraudulent loans using big data.
• Pricing elasticity prediction: This allows flexibility in pricing, repayments, rates, etc.
• Propensity score: The propensity score allows for more accurate budgeting to attract clients that are more likely to engage.
• Customer lifetime value: This shows how likely a client is to stay with your business.
• Churn rates: The rate of churn helps to evaluate how many customers have stopped using your service.
• Computer vision tech: Using the latest in AI, even KYC and AML can be done seamlessly with ID and photo/video recognition and verification.
• Geolocation analysis: Personalizing the customer experience based on geolocation can help.
How Effective Are AI Models?
Leaders often weigh whether the hassle of an AI model is worth it. Let’s take a look at some pros and cons of the lending industry.
Cons
AI is relatively new and constantly changing. It is still developing and growing pains are likely. Transparency and explainability suffer because of this. The AI model is inside a black box, meaning no one can observe how it’s arranged. That said, there is a move toward more transparent AI, meaning this may not be a concern for long.
Data is plentiful, but to make it meaningful, it needs to be cleaned. This process can be time-consuming. However, once an AI model has clean data, it can quickly make predictions and work accurately and effectively. AI models tend to be less stable than their previous log-regression counterparts. However, they are more accurate. This means they may need to be rebuilt or adjusted on a fairly regular basis (maybe four to five times per year), adding costs and time for the business.
AI models can be more challenging to deploy initially compared to classic log-regression scorecards. This is because of factors such as data usage (usually, AI models use several megabytes), the need for special software, the hiring of data scientists and time-to-market.
Pros
Innovation comes into its own when it comes to AI’s strength in predictive power. This means they can make quicker, more accurate predictions relating to credit than their log-regression counterparts.
AI draws on various types of data. In the past, I’ve only seen log-regression predictors that work with table-based data. Conversely, AI allows companies to draw from a wider range of data, and this can include audio, photos, videos and more.
AI is constantly developing and working with new data or types of data. AI models don’t have to be rebuilt from scratch. Instead, they can be adjusted to new data, making it more efficient than ever.
Where To Get The Data Needed For AI Models’ Decision-Making
AI models require data to function effectively, and lots of it. Depending on your business model, location and some other factors, how you gather this data may vary.
• Classic data providers: These include credit bureaus, AML/KYC lists, etc. Depending on your business, the data they hold may vary. For example, some may only store info on negative financial interactions. Others may store a wealth of information: for example, utility bills, income and more.
• Internal data: This is the credit history of a person. This information is stored in a bank or building society that has access to it. In addition, other facilities can see the financial health of an individual based on this data.
• Alternative data providers: Like the others, this varies from country to country. Often this data is gathered via available information online. This is often an approach used by recently emerging fintechs who can track and monitor this data.
• Open banking ecosystem: In the wake of Covid-19, this is rapidly evolving. With user consent, a bank can view data and info held in another bank by a client—the amount in the account, spending habits, transaction history, etc. This allows the potential lending provider to make a decision based on the most information possible.
Insider Tips On Working With Data Sources
Of course, it’s all well and good having the data, but it’s being able to use it that brings real value. Here are a few tips for lenders:
• Always check for something new. With lots of emerging startups with the latest tech, it’s worth monitoring the market and considering working with these companies to access the latest tech to collect and work with data.
• Data collection is a long-term process, and costs can add up if you don’t keep track of them. Set a budget and manage your finances from the start.
• Delegate till you’re ready to evolve. You don’t need to do everything in-house at the start. Instead, outsource and partner smartly to get the technology and resources you need at the best cost.
• Don’t go raw for beginners. Having already prepared (arrogated) data is perfect for companies just starting. Raw data is time-consuming and challenging to manage, especially for beginners.
To AI Or Not To AI
AI will boost your company’s decision-making capabilities, but it isn’t an out-of-the-box and done solution. Instead, you’ll need to invest time and money into ensuring it works correctly for your precise business needs.
The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Tuesday was a busy day for investors with over 100 companies releasing quarterly numbers. Among the largest of these was Netflix, which reported Q2 2022 earnings after market close.
Unfortunately for the world’s largest streaming service, its quarterly earnings came in mixed. Amid ongoing inflationary and competition pressures, months of share price declines and media backlash, Netflix bled 970,000 subscribers last quarter alone.
While these losses are significant (nearly five times the losses seen in Q1), it’s better than the 2 million subscribers Netflix originally predicted it would lose. After closing out the day at $201.63 per share, Netflix gained nearly 8% in after-hours trading. All told, year-to-date losses declined slightly to “just” 66%.
In addition to a narrower subscriber loss than expected, Netflix earnings also showed revenue of $7.97 billion. While that’s lower than the $8.05 billion consensus, it still represents 9% growth year-over-year. Adjusted earnings per share came in strong at $3.20, higher than the $2.98 expected.
Netflix’s mixed numbers are the result of a broader subscriber slowdown mingling with increased inflationary pressures. And as the dollar has grown stronger, foreign revenues appear weaker due to increasingly-unfavorable foreign exchange rates.
While several factors likely played into its better-than-expected subscriber numbers, Netflix championed the release of “Stranger Things” season four as one of its saving graces. The production broke Netflix’s prior records for its largest premiere weekend ever and saw 1.3 billion hours view in its first month. “Stranger Things” also received multiple Emmy nominations for the season.
Netflix also used its earnings report to release a few future expectations.
With quarterly defections lower than originally estimated, Netflix sees around one million net adds between July-September. (Though that still pales in comparison to Wall Street’s 1.84 million consensus.)
The company also expects free cash flow to reach “approximately +$1 billion, plus or minus a few hundred million dollars (assuming no material further movements in [foreign exchange]).”
In a letter to shareholders, Netflix attributes its financial headwinds to factors like increased competition, password sharing and a sluggish economy mingled with sky-high inflation. Management also warned that a stronger U.S. dollar will impact its international revenue, which comprises some 60% of its top line.
Noted Netflix: “Our challenge and opportunity is to accelerate our revenue and membership growth by continuing to improve our product, content and marketing as we’ve done for the last 25 years, and to better monetize our big audience.”
In the first half of 2022, Netflix has faced one struggle after another.
For instance, April’s Netflix earnings report showed that the company shed 200,000 subscribers, its first loss in over a decade. Following the news, the company’s value plunged 35% practically overnight.
Netflix also laid off hundreds of employees this year, claiming a $70 million charge for severance costs. Another $80 million non-cash impairment charge aims to cover costs incurred altering its real estate leasing agreements during the restructuring process.
These changes come as Netflix faces a barrage of less-than-stellar macroeconomic trends, including rampant inflation and recession speculation.
Additionally, competition continues to ramp up, with the likes of HBO Max, Disney+ and Apple TV+ investing heavily in their own services. Netflix also remains pricier than the alternatives, meaning it could be the first to go when subscribers trim their budgets.
Thanks to ongoing headwinds, analyst predictions for Netflix’s 2022 net subscriber adds have dropped from 20 million to under 5 million. But looking forward, Netflix may have plans – albeit potentially unpopular ones – to ease the pressure.
In recent years, Netflix has struggled to diversify its revenue streams, from adding video games to starting an online store. Now, it has some new ideas.
Netflix CEO Reed Hasting has long avoided the possibility of adding advertising revenue to the world’s first streaming behemoth. But amid its post-pandemic slump, Netflix has few other options to boost its numbers.
While whispers of an ad-supported tier were confirmed earlier this year, it was just last week that Netflix revealed a partnership with Microsoft to help launch its new revenue stream. The first ad-based memberships are expected to go live in early 2023 “in a handful of markets where advertising spend is significant.” From there, the company will “listen and learn and iterate quickly to improve the offering.”
The ad-based tier will be cheaper for subscribers, potentially boosting membership rates while offering better prices. Netflix notes that its existing plans will remain ad-free for those who prefer to pay for the privilege. Management appears optimistic about its plans, noting that, “Over the long run, we think advertising can enable substantial incremental membership and profit growth.”
It’s no mistake that “Netflix” and “Covid lockdown” often shared the same breath. When pandemic health measures took effect, people flocked to the streaming service for entertainment and fun. Unfortunately, as pre-pandemic life resumes, Netflix struggles to maintain existing loyalty – let alone attract new signups.
When business was good, Netflix could afford to ignore – and often encouraged – password sharing. But with slowing growth and an estimated 100 million households borrowing passwords, cracking down on freebies seemed an obvious choice.
This year, the company confirmed that it’s testing a few methods to ensure primary accountholders can hand out passwords – as long as Netflix can profit, too.
In March, the first wave of tests rolled out in Chile, Costa Rica and Peru, allowing primary users to add additional homes for $2.99 each. This week, Netflix expanded its testing grounds to the Dominican Republic, El Salvador, Guatemala, Honduras and Argentina.
While Netflix has encountered a few hiccups along the way – including struggling with enforcement and user backlash – it hopes to crack down on global password sharing in the next few months.
With 221 million global subscribers, Netflix’s appeal to content creators and advertisers remains strong. And with an estimated 100 million unpaid households waiting to be monetized, its profit-boosting potential is robust, too. (Even if the service loses some members in the process, 100 million homes at $2.99 each is nothing to sneeze at.)
But the company isn’t relying on new revenue streams alone to boost its appeal to investors. Netflix also plans to enhance its content library, adding jewels like new seasons of “The Crown,” “Stranger Things,” and a big-budget action moving starring Chris Evans and Ryan Gosling.
And, despite all the media hype around subscriber numbers and password sharing, Netflix continues to make money. That’s more than competitors like Peacock and Disney+ can say.
Unfortunately, from an investment standpoint, it’s not enough for the company to make money – the stock also has to rake in the dough, too. Unfortunately for Netflix investors, the company’s long-term plans are unlikely to produce short-term gains. And if the market continues to lose faith in Netflix’s potential, investors may see further losses.
As an investor, Netflix’s mixed news probably doesn’t come as a total shock. But amid the broader tech selloff, increased competition and an ongoing struggle to maintain relevance and profits, it’s hard to justify adding Netflix to your portfolio at the moment.
But instead of navigating this uncertainty and riskiness on your own, investors can turn to Q.ai to invest with your risk tolerance and timeline in mind. With our Emerging Tech Kit, you can jump on the tech bandwagon – without having to worry about short-term distractions like fluctuating subscriber numbers.
