Margins are growing, revenue is growing, cash is growing, free cash flow is growing, and there are no massive debts threatening the business. People simply aren't going to stop watching movies and shows.
The company’s fundamentals are rock solid. We saw a similar sell-off back in 2022 when everyone was terrified as well 😱. Back then, it pulled back 70% from its peak; right now, it’s down about 50%. However, there's no guarantee it will drop any further, which is why I’ve already built a position in this stock 📹
AI isn't ready to generate full-fledged TV series just yet. Doing that would require so many resources over the next few years that, for now, it's still way cheaper and easier to just shoot them in a studio.