Netflix, Inc.
NFLX
position
long
Bill Nygren, Harris Associates
Thesis
Netflix is adding approximately 25 million subscribers a year, which adds significant value. The market cap is around $200 billion, and if each subscriber is valued at $1,000, the annual return on spending for customer growth is 12.5%, which is better than potential returns from share buybacks.
Did it work?
inconclusive
confidence: low
Without specific price performance data or a defined time frame since the pitch, it's difficult to assess whether the thesis has played out. The subscriber growth claim could still be valid, but without knowing how the market has reacted or the current valuation, we cannot determine the effectiveness of the investment thesis.
Raw excerpt
No raw excerpt stored.