If you want to survive in the investing world, there’s only one thing you need to remember…
The only constant on Wall Street is CHANGE. Some of the biggest stocks on the market were some of the smallest at one point – and some the least talked about were once the darlings of the industry.
We know that names…
At one point you could have bought shares in Apple (AAPL) for as little as $0.15 a share…
Of course, the flip side to that is you could have bought Xerox (XRX) at its height in the 90’s at $155 – and have been sitting on a lemming that has hovered around $25 ever since then.
It all comes down to change…
Things change – sometimes drastically – and it even happens to those stocks we think are bulletproof.
The FAANG stocks – Facebook (FB) Apple (AAPL) Amazon (AMZN) Netfilx (NFLX) Google (GOOG) – have been those types of stocks…
The stocks we see as “invulnerable” – but that may not be the case anymore as one of them may be entering a downward spiral – causing some to wonder if the FAANG stocks are losing their bite.
Have you figured out which of the 5 powerful stocks have run into a bit of a roadblock?
If you’ve been paying attention to anything I’ve written over the past year – you may have already figured it out.
Of these 5 companies – only one has really had to battle serious adversity – as more and more competition has sprouted over the past few years and cut into its market share and dominance.
Figured it out?
It’s Netflix (NFLX)…
Netflix has had a rough go of it ever since Disney (DIS) decided that it too, was going to get into the streaming game – cutting into its already dwindling customer base – as companies like Amazon Prime, Hulu, Peacock, Tubi and others have burst onto the scene.
Netflix still has a lot to offer…
It’s just no longer the high-growth tech play.
It’s a blue-chip – and that will change how the market approaches it going forward.
This was more or less proven when the company recently missed earnings expectations, barely made it past its revenue targets and failed on subscriber growth.
Let’s take a look at the company’s second-quarter numbers…
Earnings per share missed its target price of $3.16, coming in nineteen cents lower at $2.97 – not debilitating by any means – but a disappointment for sure.
Revenue target was $7.32 billion – it eked by that by $200 million – coming in at $7.34 billion (and yes, I realize how ridiculous it sounds putting “eked out by $200 million” sounds in a sentence – but you know how the market reacts).
And as far as subscribers go – NFLX fell short by 200,000 plus – where it missed its target of 1.75 million new subscribers by adding just 1.54 million new subscribers…
But honestly, how many more subscribers are there out there that Netflix can collect from?
Now, not too many people expected much from Netflix’s second-quarter report…
But, as always, Wall Street expected better than it got – specifically with its missed target of new subscriber additions from a LOWERED expectation due to the huge number of people that signed up over the pandemic.
But by also missing on its earning – it means costs are rising for Netflix – even as the company pulls out all the stops to maintain subscriber growth…
This is does not bode well for the company.
Looking at the third quarter, Netflix expects to add 3.5 million subscribers due to the upcoming releases of new episodes of some of its best performing shows in Ozark, Stranger Things and The Witcher franchises…
But that is STILL below the 4.87 million analysts expect.
However, as I stated earlier, when you couple this against the fact that the market is saturate with choices right now – it’s hard to see anything BIG coming from Netflix…
However, while I believe the company will continue to be profitable – the big gains that were once a staple for the company are going the way of the dodo.
Meaning that Netflix ISN’T a bad investment…
It just isn’t the powerhouse tech stock it once was.
It’s the company’s new reality – which all stems from the only thing we can count on to remain constant in the markets – and that’s change, right?
That said, change is why I created GorillaTrades to begin with…
I was sick of watching my picks lose money – or worse – stay STAGNANT (yes, no movement CAN be a lot worse than downward movement) – so I created a system that took that change out of the equation.
As I’m sure you’ve heard me say before – I can’t really explain how it works – but I can show you…
Which is why I’m asking you to subscribe to GorillaTrades today. Be a part of our next round of potentially life-changing picks – and see for yourself why we’ve become one of the biggest and most trusted stock picking services on the internet.
Whether you join us or not – do yourself a favor and truly look at the stocks you’re buying – make sure they’re the perfect fit for your financial goals…
Even when those goals change over time!
“Every success story is a tale of constant adaption, revision and change.” – Richard Branson
