Netflix Pullback Is an Opportunity, Ross Gerber Says

Summary

Ross Gerber of Gerber Kawasaki argues that the post-earnings pullback in Netflix shares is a long-term buying opportunity. He highlights Netflix's durable franchise, consistent earnings growth, attractive valuation below 20x forward earnings, and strong management. Gerber also sees untapped revenue potential in theatrical releases and video games, and contrasts Netflix positively with Disney and Warner Bros., which he says lack growth.

• Gerber views the Netflix pullback as a clear buying opportunity for long-term investors.
• Netflix trades at less than 20 times forward earnings with strong cash flow and buybacks.
• He praises management under Ted Sarandos and the durability of the Netflix brand.
• Gerber believes theatrical movie releases could add billions in annual revenue.
• He notes video games and live entertainment as additional growth paths.
• Disney and Warner Bros. are cited as having no revenue or earnings growth, unlike Netflix.
• He has been buying the stock in the low $70s.