Netflix 'Burns Cash Like a Drunken Sailor,' Analyst Pachter Says

Michael Pachter, a Wedbush Securities analyst, discusses his bearish outlook on Netflix, citing concerns over subscriber growth, competition, and cash burn. He highlights the risks posed by Disney's acquisition of Fox and the competitive threat from Hulu. Pachter also points out the financial challenges Netflix faces, including declining cash flows and increasing debt. He predicts a downturn in Netflix's domestic subscribers and believes the stock will hit his target of $125.

What are the three key factors Michael Pachter mentions that affect Netflix's stock performance?

• Brand loyalty, customer service, and pricing strategy

• Advertising revenue, user engagement, and partnerships

• Revenue growth, market share, and innovation

• Subscriber growth, competition, and cash burn

How did the market react to Netflix's subscriber numbers according to Pachter?

• Investors expected a decline in subscribers

• Investors were indifferent to subscriber numbers

• Investors assumed perpetual subscriber growth

• Investors focused solely on revenue growth

What strategic move by Disney poses a risk to Netflix, as mentioned by Pachter?

• Disney's investment in original content

• Disney's partnership with Amazon

• Disney's acquisition of Fox

• Disney's collaboration with Apple

What financial risk does Netflix face according to Pachter?

• High advertising costs

• Rising production costs

• Decreasing market share

• Inability to repay creditors due to cash burn

What does Pachter predict will happen to Netflix's domestic subscribers?

• A shift to international markets

• No change in domestic subscribers

• A significant increase in domestic subscribers

• A downturn in domestic subscribers