With Netflix (NFLX) releasing its latest earnings numbers on Wednesday, our Earnings Season Pass members are ready to profit with a recommended five-day trade and Week 1 Earnings Scorecard. But this event should not be overlooked by long-term investors. Because Netflix is at an inflection point. And historically, companies at inflection points have either soared to new heights or faltered. Take Apple (AAPL): About 25 years ago, the company was 90 days from bankruptcy, shares were in a free fall, and the wolves were at the door. It successfully navigated its inflection point by bringing its star player back on – Steve Jobs – who would introduce the iPhone, revolutionizing not only its own future but also the entire mobile industry. On the other side of the coin, there's Blockbuster: In 2004, this titan in the video rental industry operated over 9,000 stores. But it failed at its inflection point by refusing to adapt to the rise of digital streaming services... and eventually sank into irrelevance. Netflix solidified its leadership at the same critical juncture where Blockbuster failed – by pivoting its DVD-by-mail business to streaming and video on demand by 2007. According to a 2022 Statista survey, Netflix still reigns among streamers, with 78% of U.S. households reporting having a subscription. But the competition is heating up in the streaming space. Consumers have more choices than ever before. And that's just one of the challenges Netflix is facing right now. It's a make-or-break moment, where the company's future hinges on how it navigates the following opportunities and challenges... Click here to continue reading |
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