Netflix just crushed earnings, but can it grow to $300 billion?
Business Insider CEO Henry Blodget looks at Netflix following the company's earnings report, which saw the stock surging to a new high. He discusses the main thesis of Netflix, which is that it's a modern TV network, and points out that most of the company's growth is coming from overseas. Blodget reminds CEOs that it's not imperative to just maximize profits - that it's OK to reinvest in your own business and still be rewarded in the stock market. In terms of Netflix's future valuation, he says that the company will need $7 billion to $8 billion of EBITDA and trade at 15-20x to support a $100 billion market cap.
Business Insider executive editor Sara Silverstein points out that Netflix just increased its prices, but still has more room to raise them in the future. Blodget agrees in the company's untapped pricing power, and then Silverstein points out that it still has great merchandising potential. In terms of how big the company can get, Blodget again highlights just how far the company has to go on an EBITDA basis to achieve the $300 billion valuation floated by NYU professor and author Scott Galloway on last week's show.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- In second consecutive week of decline, forex kitty drops $2.28 bn to $640.33 bn
- SBI Life Q4 profit rises 4% to ₹811 crore
- IMD predicts severe heatwave conditions over East, South Peninsular India for next five days
- COVID lockdown-related school disruptions will continue to worsen students’ exam results into the 2030s: study
- India legend Yuvraj Singh named ICC Men's T20 World Cup 2024 ambassador