Netflix Top, Tesla Flop?

Quarterly Numbers

What a difference a day makes! When Netflix reported the numbers last night, which where above expectations, the stock made a huge bounce upwards with a +14% jump today. They got more than 8 million new subscribers to their streaming service with another +8 million forecasted for the next quarter.

Tesla on the other hand reported even weaker numbers than expected with a further decreasing margin and a cash flow way below Wallstreet expectations and therefore the stock is down -9%, approaching now the very important support at around $210.

What to make of it

Investors tend to see and value the today often more than the tomorrow. If we only look at todays numbers and the daily charts we could easily get the impression that Nerflix stock is the better investment than Tesla. BUT if we look for a more midterm performance we see another picture: Tesla is up +110% YTD, despite the sellout today, Netflix on the other hand has only achieved +25% YTD. Which is still a performance better than the market but well, Tesla was in another league so far in 2023.
If we look at a 10Y timeframe the difference is even bigger. Netflix has done a very good 10X while Tesla stock on the other side has done two times better with a massive 20X!

Don’t get me wrong

Both Netflix and Tesla are extraordinary companies with a huge success story over the past years. But if you look longterm, which is a 10Y plus timeframe, Tesla has outperformed Netflix by factor 2. The current phase of weakness and the disappointing quarterly numbers are only one day or three months and this is not an investors but a traders timeframe.

Which company is your favourite? Tesla or Netflix? If you’re asking me it’s the big T. 😅