11 votes

Netflix shares fall after lower-than-expected earnings and appointment of co-CEO, weak guidance for subscriber growth in third quarter

10 comments

  1. nothis
    Link
    With companies as omnipresent as Netflix, I always wonder about the value of constant calls for "subscriber growth". Isn't literally everyone who'd want Netflix already subscribed to Netflix?...

    With companies as omnipresent as Netflix, I always wonder about the value of constant calls for "subscriber growth". Isn't literally everyone who'd want Netflix already subscribed to Netflix? Honestly, I think it's an achievement for them to not shrink, with a lot of competition popping up, recently.

    14 votes
  2. [4]
    Bauke
    Link
    Is having a co-CEO a relatively regular thing for companies of that size (or even in general)? I've never heard of another company that did this and I feel like the article just mentioned it as an...

    Is having a co-CEO a relatively regular thing for companies of that size (or even in general)? I've never heard of another company that did this and I feel like the article just mentioned it as an aside with no further explanation.

    It reminds me of those episodes from The Office (US) where Michael and Jim become co-managers.

    7 votes
    1. [2]
      joplin
      Link Parent
      I have heard of at least one other company doing this, though I don't remember who at the moment. Looking it up, I see Mark Hurd and Safra Catz were co-CEOs of Oracle. Not sure if that's who I was...

      I have heard of at least one other company doing this, though I don't remember who at the moment. Looking it up, I see Mark Hurd and Safra Catz were co-CEOs of Oracle. Not sure if that's who I was thinking of or not. But I guess it does happen!

      Fast Company has an article on the subject titled "Are Co-CEOs a Great Idea or a Total Disaster?" They list a few others.

      6 votes
      1. MonkeyPants
        Link Parent
        At Oracle it was a transitionary thing. Larry Ellison was getting old, Safra Catz was expected to step down at the same time that Larry Ellison stepped down, so the presumption was that Mark Hurd...

        At Oracle it was a transitionary thing. Larry Ellison was getting old, Safra Catz was expected to step down at the same time that Larry Ellison stepped down, so the presumption was that Mark Hurd would seamlessly take over the reigns. In reality Oracle still had one decision maker, the chairman.

        The same is true presumably for Netflix.

        4 votes
    2. helloworld
      Link Parent
      Research in Motion, later Blackberry, had 2 CEOs for a long time, especially during their hayday. This is the earliest example I can think of.

      Research in Motion, later Blackberry, had 2 CEOs for a long time, especially during their hayday. This is the earliest example I can think of.

      4 votes
  3. [5]
    zoid
    Link
    Is it time to start buying up Netflix stock is the question.

    Is it time to start buying up Netflix stock is the question.

    2 votes
    1. [4]
      MonkeyPants
      Link Parent
      Are you swing trading or investing for the long term?

      Are you swing trading or investing for the long term?

      1 vote
      1. [3]
        zoid
        Link Parent
        I'm not, I have no education or knowledge on stock market investing; which is something I should remedy very quickly.

        I'm not, I have no education or knowledge on stock market investing; which is something I should remedy very quickly.

        1 vote
        1. stu2b50
          Link Parent
          Realistically the default advice for retail investors is to just buy index funds, and do dollar cost averaging, which just means to spread out your large buys over several months, which further...

          Realistically the default advice for retail investors is to just buy index funds, and do dollar cost averaging, which just means to spread out your large buys over several months, which further hedges against risk.

          6 votes
        2. MonkeyPants
          Link Parent
          Typically my rule of thumb for tech is is the product amazing especially vs competitors? has the CEO demonstrated the ability to avoid disruptions, and will he stick around 5-10 years? is the...

          Typically my rule of thumb for tech is

          1. is the product amazing especially vs competitors?
          2. has the CEO demonstrated the ability to avoid disruptions, and will he stick around 5-10 years?
          3. is the price/ sales ratio (ps ratio on finviz) under 10?
          4. is it low or mid cap (under 10 billion market cap?)

          Netflix fails on all four.

          That said, I am probably not selling the little I currently own, as the tax implications are gnarly.

          1 vote