Hey community,
Always appreciate y’all’s thoughts and discussions. I’m looking at NFLX. Although it’s significant down from its ATH but looks like it’s growing roughly 15% and at a multiple of almost 26. I had bought 100 shares at 90 CB so I’m down.
Kinda funny my thesis was really just that it’s down from its all time highs so it must go up. I’m learning though so nothing burger losing that money.
That being said I know people here always say that forget about what cost basis you bought a stock. If starting from today would I buy 100 shares of NFLX. I think my answer is no. So I’m thinking of dumping 50 shares because starting from today I’d be willing to buy 50 shares. I could decide to sell a call against my 100 shares but the IV on NFLX just ain’t there to make it worth it.
Would appreciate if y’all can give me a bull case on it. My bull case is pretty much the **one-time WB termination fee, a good management, and strong growing their ad revenue.** Also, it could act as a “safe” cushion of my portfolio in case the AI frenzy send the market down. But I kinda doubt that justifies a multiple of 25.
Edit: would appreciate the bear case equally