It’s overwhelmingly apparent with the NFLX and META hate. I see it leaking into many other subreddits. Countless hit pieces that people are hoping on the bandwagon for saying they’re crap companies. It’s taking a toll on the mentality of the retail investor in this market.
For the short term, the momentum of this “growth is over” trade for tech probably has more legs and may affect other tech giants reporting this week. But if you’re a long term investor, do NOT get spooked out of this market. Sit on your hands here and see how to shakes out.
In regards to NFLX, they have been poorly managed for a long time. They are finally being exposed on their bullshit. The pandemic growth only hid their flaws and now they aren’t even prepared for the sudden decline in user growth. They’re pulling any lever to get their momentum back but it won’t happen. Doing things that are not in the best interest in their users with competitors on their heels. No moat anymore and it’s all around ugly.
The rest of the FANG stocks are NOT run this poorly. You can surely argue that META is bad cause of their drop but they have so much cash on hand and are diversified in many other ways. Their user base is HUGE and their ad revenue prints! Even if they can’t use the apple and Google data like they’ve done before. This is all regardless of your belief in the metaverse, they’re profitable and can pay off their debt with the snap of a finger.
So just sit tight, buy puts against your positions as insurance if you want to soften the blow as things may go down in the short term. Best of luck everyone.
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