✔️ REVIEWS News – Paris/France.
Bill Ackman has all his Netflix- Aktien (WKN: 552484) sold. Remarkable, because after all, the hedge fund manager actually only got involved in the period of weakness. Apparently, not turning around in a single set of quarterly numbers wasn't enough for him.
This already tells me that I can't exactly measure my approach to Netflix stock with Bill Ackman. I am definitely invested in this opportunity to Streaming in a long-term and business-oriented way. It is in any case my investment thesis still intact within the American group, which nevertheless delivered operationally in the second quarter of the year.
Here's Why I'm Not Selling My Netflix Stock Like Ackman!
To be honest, I don't know Bill Ackman's sales thesis. However, I can say what always fascinates me so much about my Netflix shares that I stick with stock certificates. Ultimately, it is the belief that this former power station Streaming does not have to be a clear winner in the overall market. Although this remains to be debated. After all, it continues to be the most important single service compared to Disney+.
But back to the actual subject: Netflix still has a good market opportunity for me. The offer of Streaming is so good, especially in all areas, that many consumers still use the service of Streaming. Maybe more as a complementary offer in the future. But it can also suffice as an investment thesis.
Moreover, Netflix is now becoming profitable. In the second quarter, the American group achieved a net profit of 1,44 billion US dollars. Free cash flow also remained in the black at $103 million. Profitability and free cash flow could provide a new operating position for the stock.
Competition is a growing problem. But if in doubt, it remains to be seen how the company and the service itself will evolve. Yes, also what pricing power you still have in the future. So far, management has always been able to gradually increase prices without losing members. If it continues to succeed, even this qualitative and quantitative investment thesis would be intact.
No winner-take-all thesis
The market Streaming is no longer a winner-take-all market, and therefore I do not follow the thesis of winner-takes-all investing. In my opinion, a good second place might even be enough. For the future, steady and moderate growth is crucial. Qualitatively and quantitatively, ideally. We can tell from the ad-supported version and also from the area of Streaming of games that the management still has new ideas.
Whether that is enough is another question. As well as one we can only answer in retrospect in view of Netflix's stock. For now, however, this is enough for me to keep my investment. And don't regrow quickly like Bill Ackman.
Bill Ackman Has Sold All Stock Of Netflix: I Don't This article originally appeared on The Motley Fool Germany.
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Vincent owns shares of Netflix. The Motley Fool owns shares of and recommends Netflix.
Motley Fool Germany 2022
SOURCE: Reviews News
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