Making the Bear Case for Netflix

Michael Pachter, a managing director at Wedbush, discusses his bearish stance on Netflix, highlighting financial projections, market challenges, and content strategy. He raises his price target to $150, acknowledging a positive cash flow turnaround but emphasizes the difficulty in achieving street expectations due to competition and rising costs. Pachter values companies based on discounted cash flows and notes investor sentiment is warming to his long-term thesis, despite skepticism. He humorously mentions his consistency in quarterly calls and the potential for profit-taking as Disney enters the market.

What is Mr. Pachter's perspective on the importance of free cash flow in valuing companies?

How has Mr. Pachter's long-term thesis on Netflix been received by investors?