REPLY CALVIN NORDIN
Ka’iulani Kini K. Talbot
Liberty University Online
BUSI530-B07: Managerial Finance
Dr. Stephen Lacewell
August 25th, 2022
Author Note
Ka’iulani Kini K. Talbot
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to
Ka’iulani Kini K Talbot.
Email: kktalbot@liberty.edu
Reply to Calvin Nordin, Discussion Thread: Financial Analysis
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REPLY CALVIN NORDIN
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Calvin, you did a great job of laying out all the information to give an educated answer to
being an investor for Netflix. There is a possibility of changing its position as Netflix is
challenged by contenders like The Walt Disney Company, WarnerMedia, and Apple (Rahe,
Buschow & Schlütz, 2021). Your conclusion made me realize that your brand perception of
Netflix favors the firm as you sound optimistic about its services and possible investment.
Although their net income has grown by 85.28% per year, their quarterly income statements
show slight growth in revenue with a decrease in net profits by almost 2% (Google Finance,
2022). Nevertheless, Netflix’s quarterly and annual cash and short-term investments seem to
trend in the negative percentage for their 2021 fiscal year reports. This means that Netflix’s
financial assets are reducing and, therefore, their ability to have liquidity as a firm. Be careful not
to be deceived into their steady numbers, as 2 Timothy 3:13 said, “But evil men and seducers
shall wax worse and worse, deceiving, and being deceived” (KJV, 2016). The false steady
numbers will be covered by their actual liquidity numbers showing false teachings of the stable
grounds on which Netflix stands. I can advise you not to be an investor and wait to see how
Netflix invests in better-produced series and movies that can attract back their lost subscribers
and recover their market position to match the consumer’s brand perception.
REPLY CALVIN NORDIN
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References
Google Finance. (2022) Netflix Inc. (NASDAQ NFLX) valuation measures & financial
statistics. https://www.google.com/finance/quote/NFLX:NASDAQ?hl=en&window=1Y
King James Version (2016). The holy bible. Christian Art Publishers
Rahe, V., Buschow, C., & Schlütz, D. (2021). How users approach novel media products:
Brand perception of netflix and amazon prime video as signposts within the german
subscription-based video-on-demand market. Journal of Media Business Studies, 18(1), 45-58.
https://doi.org/10.1080/16522354.2020.1780067
