Netflux

It’s just TV

Happy Thursday War & Peaceniks. Let’s chill.

Netflix reported earnings yesterday. And, as they always do, they focused their call exclusively on silver linings, pretending that clouds don’t exist. Their C-Suite heavily touted adding 5.9 million new subscribers in 2Q, congratulating themselves on the success of their password sharing lockdown as the cause for the uptick. They pointed to revenue and cash flow growth in the quarter, with revenues up 2.7% and free cash flow of $1.3 billion in 2Q. And yet…

“Netflix on Wednesday reported just 2.7% higher revenue in the second quarter, below what it had projected, confirming that it’s now firmly in the class of slow-growing TV companies. It’s a little hard to square that performance with a rally in Netflix stock that has lifted it 62% so far this year to its highest point since early 2022. But investors rarely pay a premium for mature companies that are throwing off cash. If they did, a firm like Comcast would be much more of a winner on Wall…