Shares of Netflix jumped higher on Thursday,
Dan says things are going to get worse before they get better and says there are headwinds to growth.
Dan says he is not a buyer of these names yet and thinks you will get a better opportunity to buy these names early next year.
Dan says things are going to get worse before they get better and says there are headwinds to growth.
Dan says he is not a buyer of these names yet and thinks you will get a better opportunity to buy these names early next year.
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00:00 Netflix has a sword nearly 80% of its May lows but still down more than 50% for the year. Dan, you've been watching this.
00:07 Yeah, I think that that Morgan Stanley data about net subscribers in 2023 and how they're tracking relative to 2021 is going to be
00:16 really important. And again, I think we all know that there's been a lot of devastation across media and many of these subscriber
00:23 based models as far as technology, consumer focus, but things get worse before they get better in 2023. We just spent a lot of
00:30 time talking about the headwinds to growth and, you know, everything I was listening to Steve talk about the corporate debt
00:36 market, it really results in cost rationalization and layoffs. And we also know that unemployment is at this kind of very near
00:44 record lows. So again, I think a consumer that is getting a bit strapped here, consumer credits going higher, they're going to
00:50 continue to look for lower cost ways. So to me, I don't think you buy these things here. I like Disney for a lot of the reasons
00:57 that maybe that analyst likes, you know, Netflix here, but I'm just not a buyer yet of these names. I think you're going to get a
01:02 better opportunity early next year to do that. Yeah. And for Disney, at least it was yesterday's so bad, it's good offering from
01:10 Steve Grasso, which Carter Braxton Worth laughed at. I mean, he laughed at all the picks that the traders had last night, including
01:16 Disney. Courtney, do you like Disney? I would I would choose a Disney over Netflix here. And I do get the idea that an ad
01:23 supported tier will help. But ultimately, when you look at a Netflix, it is slowing growth. I really don't see their subscribers to
01:29 pick up the way it has over the last several years, and especially amidst such competition like a Disney. And it trades at over 30
01:35 times next year's earnings, whereas a Disney comes in a lot cheaper and they just brought in their new CEO. They have a lot of
01:41 other business sources that can pick up in case their streaming services isn't the thing that's going to benefit in 2023. So I
01:47 would absolutely choose a Disney here rather than a Netflix.