Why Netflix seems overvalued:
On October 22nd, Queen's Gambit debuted on Netflix. It's a show about a female
chess prodigy who rises through a male-dominated world of chess.
Within 5 weeks, over 62 million households have watched the show.
Inquiries for chess sets are up 215% on eBay.
Chess set manufacturer Goliath games has reported a 10x increase in sales on a
year-on-year basis.
Google search queries for "how to play chess" have hit a 9 year high.
The number of daily player sign-ups on chess dot com has increased by a factor
of five.
The original novel The Queen's Gambit is now a New York Times bestseller, 37
years after its release.
It's such a delta in consumer behavior that we aren't quite quantifying in our
financial models while valuing tech firms like Netflix, which often makes them
seem overvalued.
With a share of Netflix, you're getting a piece of what people are going to be
obsessing over in the future, and all that comes with it.
How do you value network effects or innovation? Do imaginary growth rates
suffice?
Thoughts?
#investing #markets #netflix #tech #valuation
Posted by Ayush K. Bhatia on LinkedIn
link: linkedin.com/in/ayushkbhatia
On October 22nd, Queen's Gambit debuted on Netflix. It's a show about a female
chess prodigy who rises through a male-dominated world of chess.
Within 5 weeks, over 62 million households have watched the show.
Inquiries for chess sets are up 215% on eBay.
Chess set manufacturer Goliath games has reported a 10x increase in sales on a
year-on-year basis.
Google search queries for "how to play chess" have hit a 9 year high.
The number of daily player sign-ups on chess dot com has increased by a factor
of five.
The original novel The Queen's Gambit is now a New York Times bestseller, 37
years after its release.
It's such a delta in consumer behavior that we aren't quite quantifying in our
financial models while valuing tech firms like Netflix, which often makes them
seem overvalued.
With a share of Netflix, you're getting a piece of what people are going to be
obsessing over in the future, and all that comes with it.
How do you value network effects or innovation? Do imaginary growth rates
suffice?
Thoughts?
#investing #markets #netflix #tech #valuation
Posted by Ayush K. Bhatia on LinkedIn
link: linkedin.com/in/ayushkbhatia