Sean Stannard Stockton - Managing In a Volatile Environment
The Business Brew
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Are You Seeing Subscriber Levels Flatlining in Latin America?
The media narrative around neflix is that they are hemorrhaging customers. And yet, the stock now trades at 14 times estimated earnings for this year. Despite all the inflation, and despite ha ten % price ike of neflis own service, have continued to pay behavevery normally. We did not appreciate the degree to which an inflationary pulse in latin america would dramatically slow subscriber additions. The whole time we owned netflick, since we first invested 20 16, the issue has been, does the valuation justify this kind of very high optical pea ratio? Our contention has always been it has because they can raise prices so much, and that drives the bottom line so much
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