Gene Munster: Netflix is a difficult stock to own even after positive earnings

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'The stock reaction would suggest a higher grade, but ultimately, this trend is there is some cautionary tales here,' Loup Ventures' Gene Munster says.

, the video-streaming giant missed expectations on domestic paid subscriber additions and fell slightly below analysts' revenue expectations. It did exceed expectations for international paid subscriber additions.," continued to evince a bearish outlook Wednesday.

"Ultimately, for this to work, they need to have margin expansion and continue to grow [subscribers]. We're entering a multi quarter of really uncertainty," Munster said. The issue, Munster said, is he does not see a clear path for Netflix to expand its margins. He said he was "surprised" to see Netflix say it"I don't know how you get there," Munster said. "The easiest way to get there, obviously, is through price increases, which is now off the table ... and you continue to need to fund this quite aggressively. The one opportunity is if they can get cheap debt.

The increased competition is coming from new streaming services debuting in the next 12 months, including

 

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Showing ads is the only way for them now

Disney Plus is coming, lmao.

Anyone who would rather own Netflix with a $150 billion market cap over Disney with a $240 billion market cap is insane.

But they'll lose alot when Disney plus comes out 🤔

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