Sean Peche: Despite tanking, Netflix is NOT a value stock – and no, I'm NOT buying it

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Sean Peche is happy that value investors like himself are emerging from the wilderness, but says share price wipeouts like Netflix don't suddenly transform 'growth' stocks into investment opportunities. Using Netflix as a reference point, he cautions that although now ex-growth, the company's shares are still trading at three times revenues - and after accounting properly for content costs, its profit margins are very low. In this instructive interview with BizNews editor Alec Hogg, a long-time Netflix fan, the Ranmore Funds founder explains why he will NOT be following supposed bargain hunters into buying Netflix shares. Indeed, he reckons the numbers from the world's dominant movie streaming business are a warning of more shocks next week when the really big tech companies' quarterlies are released. Learn more about your ad choices. Visit megaphone.fm/adchoices
21 Apr 2022 7AM English South Africa Investing · Business News

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