Original title: Despite poor financial performance, Maverick owner Cuban is still firmly optimistic about Netflix Source: Tencent Securities
Tencent Securities reported on January 23, Dallas Mavericks owner Mark Cuban (Mark Cuban) is still a firm optimist of Netflix's stock after Netflix released guidelines for new paid users and subscriber data for the first quarter that fell short of expectations.
Kuban said on a CNBC program on Wednesday, “I haven't sold any (Netflix) stocks; I'm still very optimistic about them. Netflix always gives guidelines that fall short of expectations, and these are always things we discuss the day after their earnings are released... (Currently) all trends are in their favor and have an advantage over their competitors.
Netflix announced fourth-quarter results after opening on Tuesday. According to financial reports, Netflix's earnings per share for the fourth quarter were 1.30 US dollars, which is expected to be 0.52 US dollars; revenue is 5.47 billion US dollars, which is expected to be 5.45 billion US dollars. The number of paid subscribers in the US increased by 550,000, falling short of expectations of 589,000; the number of international paid subscribers increased by 8.3 million, to an estimated 7.17 million. However, the company's first-quarter results guidance was disappointing, and there were mistakes in domestic subscriber growth.
“Every new smart TV (today) has Netflix to choose from. When you go to the gym, every smart fitness device has a Netflix option. Its ubiquity is not only reflected in these aspects, but is also beginning to show this characteristic on a global scale. I don't think competition will have a negative impact on them at all.” Kuban said.
The company reported a negative free cash flow of $1.7 billion for the fourth quarter, reaffirming that its cash consumption peaked in 2019, but said it is currently slowly moving towards a positive path of free cash flow.
“Streaming, entertainment, and content are now a global topic”. Kuban said.
Netflix's stock price rose 20% in 2019, falling behind market performance. However, the streaming giant has experienced epic growth over the past 10 years, and as the best performing company in the past 10 years, its return is well over 4000%. (Drew)