This Quote From Netflix's CEO Spells Great News for the Company's Future
Many investors are writing off Netflix (NASDAQ: NFLX). Although the company's shares jumped slightly following its latest quarterly update -- primarily due to better-than-expected subscriber loss numbers -- the stock is still down 63% year to date. But is this an overreaction to Netflix's problems? I think so.
Although Netflix certainly has some work to do, important long-term tailwinds are playing in its favor. During the company's second-quarter earnings call, co-CEO Reed Hastings made a prediction investors should pay attention to. Let's see what Hastings said and what it could mean for the company's future.
Despite a recent downward trend, Netflix's paid subscriptions have been on an upward trajectory for over a decade. The company ended the first quarter with about 221 million paying members. However, the company does not believe it has peaked. Hastings said during the second-quarter earnings call on July 19, "But looking forward, streaming is working everywhere. Everyone is pouring in. It's the end of linear TV over the next five, 10 years."
Source Fool.com
