Pink's Bottom Line on Media, Money and Sports

Netflix subscriber growth, tech stocks and cryptocurrencies and the NFL kicking game

In today’s newsletter, I discuss Netflix subscriber growth, tech stocks and cryptocurrencies and the NFL kicking game.

MEDIA: Netflix Subscriber Growth

Netflix stock suffered a 21% decline in price in Friday trading following the release of the company’s quarterly earnings report on Thursday night.

In that report, Netflix forecast modest paid subscriber growth of 2.5 million this quarter, well below many Wall Street expectations and far fewer than the four million paid subscriber additions in the first quarter of 2021.

Pink's Bottom Line

While Netflix remains the premier streaming service in the United States and for much of the rest of the world, its forecast indicates that the explosive growth of video streaming is slowing.

Netflix faces a maturing marketplace plus a host of competitors with deep pockets including both big media and big tech companies.

As such, look for 2022 to emerge as a year of major change in the video streaming industry, which could result in both consolidation and with some weaker players shuttering altogether.

MONEY: Tech Stocks and Cryptocurrencies

Tech stocks and cryptocurrencies, which are both considered risky assets, have been in favor with a wide swath of investors during much of the pandemic.

However, both tech stocks, as measured through the performance of the Nasdaq Composite Index, and cryptocurrencies, as proxied by the performance of bitcoin, have declined sharply in value so far this year.

Pink's Bottom Line

The Nasdaq is down 12% in 2022, which puts it on pace for its worst ever performance in January.

Bitcoin, meanwhile, began the year around $47,000 and has declined to around $35,000 as of trading on Sunday morning.

As such, it’s quite possible that the recent performance of tech stocks and cryptos are signals that investor appetite for risk in general is diminishing quickly.

SPORTS: NFL Kicking Game

The kicking game in the NFL took center stage in Saturday’s playoff games that saw the underdog team win in both cases.

In the AFC, the Cincinnati Bengals beat the top-seeded Tennessee Titans 19-16 thanks to four field goals, including the game-winner as time expired, by Cincinnati rookie kicker Evan McPherson.

Pink's Bottom Line

In the NFC, the San Francisco 49ers upset the top-seeded Green Bay Packers 13-10 on the back of a blocked punt returned for a touchdown and a game-winning field goal as time expired by San Francisco kicker Robbie Gould.

While much of the focus — and deservedly so — is on the quarterback in the NFL, a strong kicking game becomes crucial in the playoffs.

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Jeremy Pink is currently an advisor to media and fintech companies around the world. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.

(Newsletter Editor: Karina Pink)