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."

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Source Fool.com