$Netflix(NFLX.US)
Context: Netflix subscribers are not expanding as expected this was admitted by Netflix co-CEO Ted Sarandos recently. In the 2nd quarter results, although revenue went up 13% YOY to US$12.5 billion but crack already appeared, viewing hours just increase a mere 2% and top 10 originals viewership fell 4%. YTD, this stock already fell 25%!
My trade: sell Netflix
Takeaway: The Internet is flooded with more content creators than ever and most of them are free. Take for example the influx of Chinese micro dramas which only last 1-2 minutes have even inspired the western counterpart to copy them, 1st time I ever heard that the west copy the east in film making! Those content creator might not be as profitable as Netflix but if they manage to attract audiences this itself already dent Netflix market share$NVIDIA(NVDA.US)$Intel(INTC.US).
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