@BillAckman defended $NFLX on CNBC after a quarter the market punished. And I largely agree with his view. 🟢 What he said: He viewed the quarter “very favorably,” “well in excess of estimates.” He admits advertising wasn’t quite what management hoped, but thought they had a good explanation. Netflix is “a high-growth utility”: getting someone to cancel is very difficult, and “they’ve won the streaming wars.” If the concern is that people watch differently or for less time, what really matters is subscriber growth, persistency and the ability to price for the value they offer. In his view, all three are “extremely strong.” It trades at around 18x earnings, “one of the lowest valuations in history,” with earnings growth of 20% to mid-to-high teens. And the longer it stays cheap, the more
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