US Stock market is down 22% and the Nasdaq 100 (NDX or QQQ) is down 32% year-to-date.
Netflix
After 2 quarters of negative subscriber growth Netflix adds 2.4 million subscribers in Q3 and expects 4.5m in Q4. Here are some key takeaways.
- Revenue grew 6% YoY or 13% excluding FX. This is a big deal because it shows they continue to scale topline at double digit growth.
- Advertising tier launching in November ($6.99 in US). 5 minutes of advertising per hour. As linear TV continues to die, advertising $’s will move to streaming. Netflix is charging top tier rates to advertisers.
- Netflix estimates all streaming competitors are losing money and combined losses are north of $10 billion. Why important? Because Netflix has reached critical mass and is generating $5-6 billion in annual operating profit. Very difficult to replicate!
- Free cash-flow over $1 billion in 2022 and materially larger in 2023.
- Netflix stock was 75% off its high. Now it is trading around $270 or 61% off high.
Tesla
Tesla is the most exciting company in the world; leading the EV revolution and transition to sustainable energy.
- Q3 Revenue: $23 billion. Up 56% Year-over-year.
- Q3 EBITDA: $5 billion. Up 55%.
- Q3 Storage Deployed (residential and commercial batteries). Up 62%
- Full Self Driving (FSD) Beta will roll out to everyone in Q4.
- Reiterated 50% topline growth for the foreseeable future.
- Semi deliveries begin this December and Cyber next year.
- Next gen car will be half the cost of 3/Y platform and smaller. Will exceed production output of all other vehicles combined.
- Elon see’s a pathway for Tesla to exceed the value of Apple and Saudi Aramco combined ($4.4 trillion), excluding accounting for Optimus (the robot). I do too.
- Tesla stock down 5% 🤔🤣Reminds me of Taylor Swift lyrics: “And the haters gonna hate, hate, hate, hate, hate…” I’m just gonna wait, wait, wait, wait, wait.
- Did you see Tesla AI day? Here’s a short video to give you a taste of Optimus.
