Netflix Sell-Off Seen as Buying Opportunity as New Formats Lift Engagement
Strong profit margins alongside early podcast revenue bolster the case.
Overview
- A Yahoo Finance analysis calls the post-earnings drop in Netflix shares a buying opportunity.
- Management points to live shows, sports and video podcasts raising engagement and sign-ups, citing Japan's World Baseball Classic with more than 31 million viewers.
- Co-CEO Greg Peters said podcasts lean toward daytime, mobile viewing and that Netflix has taken about 7% of addressable revenue.
- Netflix reported a 32% operating margin last quarter, underscoring ample resources for new content bets.
- Co-founder Reed Hastings is set to leave the board, a governance shift that also figured into reactions to the quarter.