Nathaniel Thiele

Here are some reasons why I am bearish on Netflix.

Netflix is unlike other companies in the FANGMA.

I feel like Netflix is the one to be most bearish on. Right now Netflix has one product. That is the greatest risk that Netflix currently faces.

Amazon, Alphabet, Meta, Apple, Mircosoft, and Telsa all currently have more than one product or product type. The risk with Netflix is a risk of diversification.

Netflix’s only product is a streaming platform with only one way to make money. It makes money by having subscribers. If subscribers don’t pay fees or allow other people to use Netflix the company loses revenue.

Netflix also has heavy competition from other streaming services such as Amazon Prime, Disney+, Hulu, Discover+, ESPN, and Apple TV. Losing market share due to increased competition caused the company to lose moat.

Netflix also has been in the Indian market for many years and only has 5.5 million subscribers. In the second-largest market by population, Netflix is not a viable solution.

For these reasons, I am bearish on Netflix.