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Iñaki de la Parra's avatar

The growth numbers are undeniably impressive—302M subscribers 🚀—but trading at 29.3x EV/EBITDA seems a bit rich for me. With $18B in content spending and intensifying competition, I wonder if the $72B revenue target for 2029 might be overly ambitious. Considering that the advertising-media-entertainment space isn't an area I know deeply, I really appreciate your insights. Thanks for sharing 🤙

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Kontra's avatar

Thanks for reading! What seems to be happening and why I also believe and project $72B by 2029 is that increasing subscribers (ongoing transition to streaming) and advertising creates a new momentum. The watch out is more on the price increase side and if Netflix can keep doing this without losing subscribers (needed to get to the 2029 estimate).

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Iñaki de la Parra's avatar

Great reasoning

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