Why Netflix Should Replace Tesla in the 'Magnificent Seven'
Pumping the brakes
To be clear, Tesla's focus on innovation and disruption, coupled with the secular growth of EVs, resulted in strong financial performance over time that allowed this business to make it into the Magnificent Seven. But the times have changed.
Long gone are the days of ultra-low interest rates and minimal inflationary pressures, favorable conditions for virtually all businesses, but especially so for car companies. Tesla is facing a new macro reality.
Press fast-forward
While Tesla appears to be driving backward, there's one thriving business that is pressing fast-forward. I'm talking about Netflix (NASDAQ: NFLX). The streaming stock is up 1,150% in the past decade, an almost identical performance to the EV enterprise. And it deserves a spot in the exclusive Magnificent Seven.
Like those seven businesses, Netflix also has a culture of innovation and disruption, actually creating a totally new entertainment category.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.