Jul 28, 2022
In Agriculture Forum
Recently, Netflix (Netflix), the "popular wholesaler" that produced "House of Cards", "Bojack Horseman", "Roma", "Stranger Things" and "Love, Death and Robots", released the second 2019 edition. quarterly financial report. With this release, the phone number list closing price on the day fell by 10.27%, and the market value evaporated by 16.2 billion US dollars overnight, which is equivalent to the market value of the entire iQiyi, and it is also the biggest drop in Netflix's stock price in the past three years! "Is Netflix doomed?" The financial report data shows that as of June 30, 2019, Netflix’s revenue in the second quarter was US$4.92 billion, an increase of 26.0% from US$3.91 billion in the same period last year; net profit was US$270 million, a decrease of 29.6% from US$380 million in the same period last year. %. Seeing here, it's not a bad earnings report. And Netflix's "super bull stock" name is not covered. In the past ten years, the highest increase was 94.4 times, far exceeding Amazon's 23 times in the same period, pulling out a beautiful K line. Why does a small fluctuation in net profit make Netflix labelled "off the altar" by many overseas investment banks? The profit model of "strengthening the outside world and cadre in the middle" As we all know, Netflix is an advertising-free video website, which determines that its main revenue can only come from user subscriptions. Revenue = number of users x membership fee Netflix's business model is very simple: attract users through premium content → users pay to earn revenue → increase investment in original content → attract new users, stick to old users → gain more revenue... Simply put: Profit is achieved by driving "user growth" through "dead content". Once user growth goes awry, the story doesn't make sense on Wall Street.