?? They're profitable and they made 4.5B in net income in 2022. 2023Q1 they made 1.3B net income.
Your analysis makes no sense. Please learn more about finances before commenting on financial matters.
Your analysis makes no sense. Please learn more about finances before commenting on financial matters.
And if you look at the quarter before -- 2022Q4 -- they made just $55 million net income, which on revenue of 7.85B is below 1% profit.
The overall point is that Netflix is in an extremely volatile and risky industry where it's not in a position to leisurely "extract" more profit because it's a bad guy or something, but rather it's very much been forced into doing things like cracking down on password sharing and introducing an ad-supporter tier simply to stay healthy as a business. Fortunately both of those things seem to be going well, but they easily might not have.
If a company's market cap drops 75% in a short period of time, it's making big changes out of necessity, not as a comfortable choice.
— Ernest Hemingway, The Sun Also Rises
You picked the one quarter they did poorly, before this they made a consistent 1B+ net profit. This is extremely good financials, and not volatile at all. They also have 50B in assets at the moment, including almost 8B in cash.
>That's a 75% plummet, which is definitely approaching the equivalent of struggling-to-keep-the-lights-on for a modern corporation. That's three quarters of the way to bankruptcy, big red flashing danger lights.