Sell Netflix stock (NFLX): Here’s one simple reason why
Netflix earnings for the most recent quarter come out tomorrow.
I can’t say I care much what the streaming company reports. Netflix is no longer the disruptor it once was.
If you own NFLX stock, consider selling it.
#1 reason to sell Netflix stock: TV streaming is now being disrupted by… Other streamers.
Twenty-five million Americans canceled their cable TV bundle in the past five years as services like Netflix disrupted them.
Netflix and Disney (DIS) brag about how many subscribers they add each quarter. But the amount of folks who turn right around and hit the “unsubscribe” button is shocking.
More than 50 million Americans canceled a streaming service in the first three months of 2024:
Streaming falls into the “awesome service, bad business” bucket.
The “holy grail” of investing is owning businesses in a league of their own.
For example, only one company makes the fastest AI chips…
Nvidia (NVDA). That’s it.
Streaming is the opposite. You have Netflix… Disney+… Amazon Prime… Apple TV+. And the competition doesn’t stop there.
As Netflix founder Reed Hastings once said, “Netflix’s biggest competitor is sleep.”
Avoid streaming stocks.
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I publish fresh research every M/W/F.
— Stephen McBride, Chief Analyst at RiskHedge
