Good morning. During earnings calls this week, the CFOs of big tech companies, Meta and Microsoft, delivered a similar message: the AI race requires unprecedented capital spending, but that spending is disciplined, demand-driven, and ultimately margin-accretive rather than reckless. The companies urged investors to look past headline numbers and focus instead on utilization, long-term economics, and visible revenue traction.
Today, it's the world's largest streaming platform with over 300 million global subscribers and a proven ability to reinvent itself. The company's crackdown on password sharing, expansion into advertising, and disciplined content strategy have all helped reignite growth over the past two years. But for investors, the question is less about what Netflix has accomplished and more about where the next phase of growth will come from.
