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This Is How Netflix and Facebook Plan to Grab More Users

In today's video I look at fundamentals, financial metrics, and recent news for Facebook (NASDAQ: FB) and Netflix (NASDAQ: NFLX). Below I share a few highlights from the video.

  1. On July 14, 2021, reports appeared that Facebook is paying $1 billion to content creators. Netflix was also reported to be moving more into the gaming market for its streaming platform. Both moves are ways Facebook and Netflix could acquire new users.
  2. As of July 15, 2021, Netflix stock has returned roughly 2.6% to investors in the past 12 months. The stock price has not moved much, as investors are worried that the user growth has slowed down for the streaming giant. The fear of a slowdown in growth could be providing long-term investors with buying opportunities.
  3. Facebook shows strong fundamentals in the trailing 12 months. It has positive cash flow from operations, profitable earnings, and substantial cash and short-term investments with no debt. The strong balance sheet allows Facebook to be very aggressive at testing new products and features.

*Stock prices used were the closing prices of July 15, 2021. The video was published on July 15, 2021.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jose Najarro owns shares of Facebook. The Motley Fool owns shares of and recommends Facebook, Netflix, Shopify, and Zynga. The Motley Fool recommends Electronic Arts and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policyJose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.


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