Prof G Markets Is Netflix Overvalued? LVMH Bets on Private Jets & Crypto Custody Firm BitGo Files for an IPO
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Jul 22, 2025 Dive into the surprising dip in Netflix's stock, despite strong earnings, and the implications of rising content costs. Explore LVMH's big bet on the private aviation sector through Flexjet, capturing the luxury travel trend among consumers. Finally, unpack the buzz around BitGo's IPO filing, shedding light on the current state of the IPO market and the scrutiny facing crypto firms. Each topic reveals intriguing insights on market dynamics and shifting consumer behaviors.
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Netflix's Strong Quarter but Stock Drop
- Netflix posted strong Q2 results with 16% revenue growth and a 46% net profit increase.
- Yet, the stock fell due to concerns about engagement levels and future content spending.
Engagement Drives Netflix's Value
- Engagement time is crucial for Netflix's subscriber growth and pricing power.
- Investors worry whether Netflix can boost engagement amid high content spending.
Netflix's Valuation and Competition Risks
- Netflix trades at 52 times earnings, comparable to tech giants, but lacks diversification.
- YouTube gains in streaming time at lower content cost challenge Netflix's high-spend model.