Michael Pachter of Wedbush was just on the TV talking about reversing his short since they've dropped so much (600s to high 100s).
He made a couple of key points. One being that the market appears to be pricing Netflix to go to zero subscribers which he believes it's not.
They've lost a couple of million subscribers in each of the last two reports, but they're also looking at creating an ad-supported tier.
He said that he believes that Netflix is going continue to to be the anchor subscription for streaming. I don't happen to believe that. I think that Disney+, which is much cheaper and owns all of the key intellectual properties, does the highest quality family content, and has a huge offscreen ecosystem driving brand loyalty, is already the anchor subscription, which is helping drive NFLX down.
He also compared streaming to restaurants, calling, Netflix, the Taco Bell of streaming where HBO was the Ruth's Chris or Morton's steakhouse.
So what else is going on to make it a buy or continued short? Or should it just be forgotten?
There's a Forbes link I'll add in a comment.
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