Hedgeye Communications analyst Andrew Freedman recently recapped his short thesis on Netflix (NFLX) on The Macro Show, discussing the pushback he’s heard from the bull side. Here are a few of his counterarguments:
- “The bull thesis is they can get to 500 million subscribers by 2025. I think that’s going to be very hard to do unless they cut price really aggressively in emerging markets.
- “They’re past 50% penetrated potential peak adoption in developed markets, ex-U.S., so the next wave of growth is going to come from a user that’s lower margin and harder to reach.”
- “Netflix isn’t a cable company and spending billions of dollars on movies and TV shows is different than spending billions of dollars on infrastructure and fixed assets.”
Watch the full clip above for more.