By: Nichole Henderson POSITIVE COMMENT: Jim Cramer, Mad Money TV - PowerPoint PPT Presentation

By: Nichole Henderson

POSITIVE COMMENT: Jim Cramer, Mad Money TV These remarks were made in a recent FANG Stock report highlighting: Grub Hub, Amazon and Netflix for high stock performances, and for being lead innovators in their industries. Source: https://seekingalpha.com/article/4067718-fang- group-gets-new-addition-cramers-mad-money-5-1-17

NEUTRAL COMMENT: Max Greve, Tech writer These remarks were made in a recent report stating that Netflix and HBO are reaching their U.S. growth limit due to account sharing. Account sharing reduces the number of open accounts, and is an important consideration during the valuation process. Recent Data: 34% of millennials pay for their own Netflix 8% don’t have Netflix 58% use someone else’s account Source: https://seekingalpha.com/article/4067472- netflix-hbo-now-reaching-limit-u-s-growth

NEGATIVE COMMENT: The Frugal Prof, writer This article states that customers are angry at Netflix’s decision to replace its traditional 5 point rating scale with a new thumbs up or thumbs down binary system. Critics say this is due to Netflix’s recent, unpopular releases and decline in content quality. Source: https://seekingalpha.com/article/4067364- angry-customers-give-netflix-thumbs

POSITIVE COMMENT: Seeking Alpha Reporter Netflix has a new partnership with Chinese web company, Baidu’s owned streaming service, iQIYI. Previously, companies such as Netflix, Google and Facebook have been prevented from entering the Chinese market due to strict regulations. The new licensing deal will have minimal expenses to offset the revenue gained from it, and high- margin ventures are a projected for a company like Netflix that is constantly criticized for spending too much cash. Source: https://seekingalpha.com/article/4067364- angry-customers-give-netflix-thumbs

– Netflix should continue to disturb the market with risky, competitive and original content in order to keep stakeholders happy and positive. – The licensing deal with Baidu’s owned streaming service, iQIYI, was positive because a significant chunk of revenues for content creators comes from licensing out the content to other providers. This move boosted investors in the market. Recommendations: – Netflix needs to convey to investors that they are not done growing in the U.S. and what its plan is for future growth. – Netflix needs to reevaluate its new ratings system. If more customers are unhappy with it than they are loving it, it might be worth considering going back to the 5 point metric.

– Any Questions?