Hey guys, I posted two months ago about going all in on Netflix (I actually did that so it turned out ok for me) and now they're about to have their earnings tomorrow.
The question for me is: What red flags in earnings would you be looking out for to make a decision to either hold for the next 4 years (my original and current plan is to hold till 2030 or until they hit 1 trillion valuation) or to trim down and take some profit. Not really a question of investing philosophy. I know holding one stock is dumb no need to reiterate that lol.
I’m not sure if this should’ve been posted in daily discussion instead, still new to Reddit.
Posted by deadwanderingdaoist
6 Comments
I sold off most of my options today and kept 600 shares. Only big concern is their outlook during earnings and what expansion paths their looking into.
Price increases will likely carry it for the next year. The longer term thesis comes down to ad revenue growth and if that’s able to overtake subscriber growth, which shouldn’t be going down but likely isn’t growing as fast anymore.
If you’re planning on holding until 2030 this earnings means nothing. Sit back and check the price once every 6 months
I am also a long hold. Bought all the way down and loaded up and doubled my position at 80. To be honest, I believe strongly in the company and what the management have done thus far, and there’s almost nothing that I am expecting tomorrow to change that in either direction. Would love to see them go after more NFL contracts, but not a game changer for me. I fully expect the market to critique anything it can find tomorrow given the recent massive run up and overbought territory, however.
People who say “holding only 1 stock is dumb” are people that don’t know what they are doing and are better off buying an index. Regurgitating the garbage they have been told by financial advisors or people who took finance classes in University. Diversification is the key!!!
Warren Buffet argues that if you wouldn’t feel comfortable owning the entire company, including its long-term prospects, risks, and management, you should not own a single share of it.
He famously said, if he wasn’t running a corporation and was just investing on his own, he would only own shares in 1-3 companies at a time – because he considers owning a share of the company as if he owns the company. You should know everything there is to know about their business model and their future growth prospects etc… and no one has the bandwidth to research in depth and follow more than 1-3 companies at a time.
If you are not interested in the work that goes into “investing” then yes, just buy an index and steadily compound at 7%.
There are far worse companies to go all in on than Netflix. Does anyone really believe Netflix won’t reach a new all time high at some point? They almost certainly will.
compared to mag 7, it still recovers slower. keep holding. looks to me a steady improvement