Netflix Stock Setting Up For A Crash?!
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Today we discuss if Netflix setting up for a stock crash in the next 24 months? The major competition is incoming from Amazon, Apple, Facebook, Google, Hulu, and others. Enjoy!
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Guys, there’s something bubbling beneath the surface that absolutely blows my mind right now and no one is paying attention to this. In regards to Netflix everybody’s just disregarding it right now.
And Netflix stock is a stock that in the just in this year okay is up 105% 105% or six months into the year you flipping my flapjacks? That’s ridiculous guys, ridiculous performance, like you would think like, the Netflix is clear, they got no competitors, they’re going to take over the whole space.
Everybody’s just going to be watching Netflix and no one’s gonna be watching anything else. And what is actually going on underlying right now is there’s mass amounts of competition that is about to flood into the market like we’ve never seen before.
When it comes to our eyeballs, okay, our eyeballs only have so much time we can watch programming, okay, and what’s going on right now is about to get serious, okay, Apple signs over to make original programs.
This is just one in a million moves that is being made out there of companies funneling ridiculous amounts of money into original programming, trying to get your eyeballs on watching them, okay, and watching their programs on their services.
All right, and I’m going to take you through the whole competitive landscape right now. And why Netflix is a stock that should not be up in my opinion, 105% year a day, it should probably be down, okay. And by the way.
Netflix is actually a company I could own nowadays, if I wanted to back in the day when it was unprofitable. I refuse to own it. Now. It’s actually profitable. And I refuse to buy the stock because I see a lot of danger ahead over the next few years. Okay.
Let’s talk about the competitive landscape for a minute. Let’s really view this. Okay. First off, there’s a company that everybody seems to forget about. Right. And their name is Disney. And they’re about to launch a massive streaming service in 2019. Okay.
This upcoming year, all right, they’re launching a massive streaming service. If you have any conception of how many brands how much content, how much dominating content Disney owns.
This is a massive, massive competitor to Netflix in itself. Okay, the amount of content Disney owns is on a whole other scale of pretty much any company out there then the brands Disney owns from Star Wars from the Marvel brand. Okay.
We’re talking about so many different types of Disney shows all their original programming they have. It’s unbelievable guys, they own ESPN, sports, all that type of stuff. Like it’s ridiculous, guys. And this is a highly profitable company. Okay.
The profits are ridiculous at Disney. All right. So highly profitable company. They’re coming out with a major streaming service this upcoming year massive competitive a lot of people just seem to forget about because they’re not a Silicon Valley company. All right.
Then you got this other company name Facebook coming out. Okay. Facebook is now getting super serious with video. Okay, this is pretty much their biggest initiative right now. And this company is one of the most profitable companies in the world. Okay.
The profits that this company pours in, are on a whole nother level than the majority of companies out there. All right, massively profitable company. They don’t want to, you know, put too many more ads into news feeds of Facebook and whatnot.
Because everything that went down, so they really want to focus around video and building out video content with Facebook, watch. All right. And you think about the, you know, all the platforms, Facebook’s on, right.
You think about Facebook, which has has, you know, about a billion users. All right, then you think about Instagram, which probably has 500 million plus easily Okay, then you think about WhatsApp that has over a billion people. Okay.
Think about the way Facebook can advertise this. And you you understand the profits Facebook has, imagine how much they’re gonna be able to spend on original programming in buying a programming. Okay, it’s ridiculous.
It’s on a whole nother level. Right? Then you have this company named Google McDougal, who through YouTube is expanding on a massive way Okay, into video. Now, we already know they own the you know, video streaming site, YouTube, okay, you’re watching this video on YouTube.
We know that. And we know that that’s a competitive place. Like if you’re watching YouTube, you know, you only once again, you only have so much time you can be watching stuff. Maybe it’s an hour a day, maybe it’s two hours, maybe some people have four or five hours a day to watch stuff, right.
Maybe some people only have 10 minutes maybe to some people who have no time. But there’s a finite amount of time out there. So if somebody is watching YouTube, they’re not watching Netflix or Disney or Facebook or something like that. Okay.
So they got that but now with a with YouTube TV, and then YouTube read. They’re they’re competing on all the friends with this one with original programming. And guess what Google makes they make massive profits.
We’re talking about one of the most profitable companies in the entire world guys. Unbelievable profits from this company. Okay, so you’re gonna see a trend here and then we’ll get to Netflix and you’ll see Wow, things kind of change. Okay.
Then if that wasn’t enough, okay, if this isn’t already enough competition, now you have the almighty apple. The last company you ever want to compete against is Apple. You want to compete against them.
Anybody else in the world except apple? Because guess what happens every time Apple comes in a space. They take over that space, every single thing, whether we’re talking cell phones, whether we’re talking tablets, whether we’re talking computers, whether we’re talking headphones, it doesn’t matter.
Whatever space they come into, they’re taking it over. Okay? Remember when Fitbit was the big thing, okay? They were the dominant wearable company. Apple Watch comes out in a year later, guess who’s the dominant wearable game? It is then Apple, okay, not Fitbit anymore.
Whatever space Apple wants to come into and take serious they’re taking it over, man, you’re not going to compete with Apple and when they just know how to win, win win. That’s all they do. It’s like going against the Warriors man.
You’re not freaking beating that team. Okay, now they’re starting to take video super serious we just saw right there. They just you know, sign Oprah which you know, who’s bigger than Oprah out there honestly, in the game, right to original programming that’s gonna be massive in this company.
There’s no one in the world more profitable than apple. Okay, so profits coming in for Apple are unbelievable. All right. So then on top of this, okay, on top of this, then you have obviously the hulu’s of the world. You obviously have all the old school players, okay.
We’ll just call them old school players that are competing for your eyeballs, you know, with cable services and whatnot. And some of these make profit, some of these don’t. Okay. And then you finally you finally get to Netflix. Okay, you finally get to Netflix.
Netflix, what do they own for really original content? Almost nothing if you actually look like House of Cards, for instance, is not even owned by Netflix. Okay? Stranger Things actually isn’t even owned by Netflix.
Okay, they own very little original content, and especially the content that’s actually popular on the platform. They pretty much own none of it. Okay, they just buy it out for a certain mountain, but they don’t really own anything.
It’s not like Disney, where they actually own the Star Wars brand. No one else can use that brand. No one else can bid on that brand. They own Star Wars. Not like, you know, Iron Man that Disney owns Iron Man, like no one’s getting Iron Man, right.
Apple signs over to this deal. Like no one can get over for a certain amount of time. And guess what? Netflix, they make little profits. Okay? They make low profits, very, very small profits. It’s not even on a comparable scale.
With Google. It’s not even on comparable scale with Facebook, Disney or Apple. So you got this company that has very little content they actually own then pretty much nothing popular of content, they actually own right.
You had them with the they had the the first starter. Okay, so they were the kind of the first major player in video streaming. But at the end of the day is a company making very small profits.
They have these massive competitors who have literally all just gotten serious within the past year or two. Okay, Facebook was not really caring that much about video, especially original content, Apple is just starting to get in the game.
YouTube has just started getting serious around original content, really within the past year or two. And then you got Disney who’s just coming out with their streaming service this year. So you have massive amounts of competition coming in this space over the next one to two years massive amounts of competition.
And your Netflix and you’re making these little teeny profits right now. And it’s like, where do you go from here when you got these guys coming in, and these guys want to win, okay, and Apple, they always win, they always win. Okay, so as Netflix.
I would be really, really freakin scared as a Netflix shareholder, I would be really, really scared. You know, when you got these guys coming in? It’s just it’s nasty guys. Like, how are these guys gonna win? How are they gonna win.
They got these little profits coming in. They’re gonna have to spend every dime pretty much coming in the door just to buy, you know, what a quarter of what Google could buy or Apple Goodbye, or Facebook or Disney.
And people can always use the thing about, oh, well, these other companies are focused. They’re focused mainly on some other things. So maybe Netflix can still be the big guy 510 years from now.
And I say, well, apple, whenever they focus on anything, they win it, okay, so the apple can focus on a lot of things. And when Google focuses on a lot of things, and they win the majority of categories, they compete it.
Same thing with Facebook. Same thing with Disney. It’s just it’s Netflix stock is dangerous, and no one’s paying attention to it. Everybody’s just buying the stock up right now. And it’s a hot stock.
And when you actually look at it from a long term perspective, thinking about the next 2345 years down the road, it gets really really worrisome guys really, really worrisome. So anyways, I would love to hear your guy’s opinion down there in that comment section.
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