The Power of Netflix
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 22 January 2021
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:07.0 | From full global headquarters, this is Motley Fool Money. |
| 0:18.0 | It's the Motley Fool Money Radio Show. I'm Chris Hill joining me this week. |
| 0:22.0 | Senior Analyst Jason Moser and Ron Gross. Good to see you. |
| 0:25.0 | As always, gentlemen. Howdy. You're doing, Chris. |
| 0:28.0 | We've got the latest headlines from Wall Street. Bestselling author Aaron Meyer is our guest |
| 0:32.0 | and as always, we've got a couple of stocks on our radar. |
| 0:35.0 | But we begin with another all-time high from Netflix. The streaming video giant added |
| 0:41.0 | 8.5 million global subscribers in the fourth quarter. That is 2 million more than Wall Street |
| 0:46.0 | was expecting. Shares of Netflix up 15% this week, Ron, and hitting a new high. |
| 0:52.0 | Hello, Queens Gambit, which I loved, by the way. I highly recommend it if you haven't seen it. |
| 0:57.0 | Definitely exceeded expectations. But interestingly, that 8.5 million subscribers are in line |
| 1:04.0 | with what we saw in the fourth quarter of 2018 and 2019, which means things are probably |
| 1:09.0 | returning more to back to normal versus what we saw happen in the early stages of the pandemic |
| 1:16.0 | where they saw a flood of new subscribers come in because we all had really nothing to do |
| 1:21.0 | but stream and watch TV. So management is kind of tempering expectations. |
| 1:27.0 | They said investors should expect just 6 million subscriber additions in the first quarter |
| 1:32.0 | as it continues to adjust to that pull forward of subscribers earlier in 2020. |
| 1:37.0 | And I think I should note, there's nothing wrong with pull forward. |
| 1:40.0 | Sometimes when we discuss pull forward, we talk about it in terms of a negative. |
| 1:44.0 | But getting money earlier than you expect to get money can be a wonderful thing, especially if you have |
| 1:50.0 | a sticky business like Netflix with high retention rates. |
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