Quote:
Originally Posted by jfman
And like an MOT, or a party manifesto commitment, it’s only words on paper on a given day.
The bubble is bursting.
---------- Post added at 07:01 ---------- Previous post was at 06:58 ----------
Ultimately there’s never been any underlying assets or value in the share price. Fundamentally if Netflix can do something Amazon can do it without the debt.
|
To be more precise, the share price is not a true reflection of the underlying assets, which do exist - there is content that Netflix owns, and which it is able to sell access to. As too often happens with tech stocks however, the share price has come to reflect almost entirely the market’s view of growth potential without any serious consideration of actual value. Lockdown was extremely generous to Netflix’s subscriber numbers and this comedown was always inevitable. The risk for them now lies in an over correction, making them vulnerable to a hostile takeover.