Making the Bear Case for Netflix

Michael Pachter, a managing director at Wedbush, discusses his bearish stance on Netflix, highlighting financial projections, market challenges, and content strategy. He raises his price target to $150, acknowledging a positive cash flow turnaround but emphasizes the difficulty in achieving street expectations due to competition and rising costs. Pachter values companies based on discounted cash flows and notes investor sentiment is warming to his long-term thesis, despite skepticism. He humorously mentions his consistency in quarterly calls and the potential for profit-taking as Disney enters the market.

What is Michael Pachter's revised price target for Netflix?

• $150

• $125

• $175

• $200

According to Pachter, what is a major challenge for Netflix in increasing its subscription prices?

• Decreasing subscriber base

• Intense competition

• High production costs

• Lack of new content

Which companies are mentioned as Netflix's competitors in the video?

• Paramount and NBC

• Amazon and Disney

• Apple and Google

• Hulu and HBO

How does Pachter describe his track record in predicting Netflix's quarterly performance?

• Inconsistent and often wrong

• Frequently criticized

• Consistently accurate

• Rarely accurate

What is Pachter's humorous suggestion for his future if Netflix's stock performs well?

• Invest in Disney

• Captain a mega yacht

• Buy Netflix shares

• Retire early