• Brett Schafer

Deep Dive: Alex Morris Discusses Netflix Stock



Listen On:

  1. Spotify

  2. Google Podcasts

  3. Apple Podcasts

Show Notes


This week we welcomed back recurring guest ALex Morris, who runs the Science of Hitting research service, to talk Netflix. Previously, we've had Alex on the show to talk Airbnb and Spotify. Here are the questions we asked Alex about Netflix:


  1. Thoughts on the recent earnings?

  2. Can you give an overview of Netflix’s unit economics and business model?

  3. (From Twitter) Can you explain how they account for content amortization in the financials?

  4. What ways do you think they can increase their pricing power?

  5. What can they do to keep churn stable and go down?

  6. (From Twitter) Thoughts on the streaming space as a whole? How important is competition to the Netflix thesis?

  7. You mentioned that short-term industry headwinds could be a long-term benefit? Why do you think that is?

  8. (From Twitter) Thoughts on their video game investments? What do you think would be the best way for them to enter the gaming market?

  9. What are the biggest growth drivers going forward?

  10. Valuation. What kind of margins do you think the business can have at maturity?

  11. What’s the bear case look like for Netflix?


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Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.

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