Rast.guru’s Post

Netflix’s success story shows no signs of slowing down, with shares rising after a stronger-than-expected quarterly report. There is no need for a PhD in accounting to see why: mo’ users, mo’ money, and way more hype. Remember that “hiccup” in user growth after COVID? Yeah, that was just Netflix catching its breath after binging on a year of explosive sign-ups. In fact, Netflix’s growth trajectory is again aligned closely with our model projections dating back to 2013. But here’s what’s got investors sweating: Is Netflix overvalued? Even accounting for this great and lasting growth, the answer is yes. How long will it remain overvalued? Our model suggests Netflix won’t hit a growth plateau until 2027—so the hype probably isn’t cooling anytime soon. So, is it time to worry? Not really. Just sit back, relax, and Netflix and chill… while the hype is still hot.


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