00:00Take a look at shares after hours down nearly 9%. A lot of disappointment, clearly, when it comes to
00:06the guide. Just to set the scene here, I'd love to hear your reaction.
00:11Well, nobody likes to guide high anymore because it doesn't make any economic sense for any CEO to
00:17be overly optimistic. So I think that they're playing the Apple playbook, which is keep
00:22expectations low. But I think these are great numbers. There's no parsing about it. I think
00:28what people wanted was even better. They didn't really up their guidance for the year or other
00:33things that I think people were hoping for. And so we see a little pullback in the stock.
00:37But Netflix is in a phenomenal position. They continue to just basically print money.
00:43They have a ton of free cash flow to reinvest into the business or to distribute to shareholders
00:49one way or another. So this is just a core holding for us. And I think they pulled a masterful
00:55gambit
00:56with the way they handled Paramount and Warner Brothers. So they're now the top player in the
01:02entertainment industry. And I think that'll be forever. Well, you know, you mentioned,
01:06you know, what happened with Warner's and we did see them boost their full year free cash flow
01:12outlook. A lot of that has to do to that breakup fee that they got $2.8 billion. I mean,
01:17as an investor
01:18in the stock, how would you like to see them sort of spend that breakup fee? Where would you like
01:23to
01:23see the money go to? Well, you know, after hours, they could just buy back stock. You know,
01:29I think that the stock is actually relatively cheap compared to Netflix's historic valuation. And I think
01:36the market price hasn't really fully recovered from all of the merger stuff. And so, you know,
01:42as an investor returning capital shareholders, that's what they should do. If they can't invest
01:47it in the business, they return it to shareholders. And Netflix is pretty aggressive about doing that.
01:51So, so this is a great shareholder friendly company. And that's why we like it.
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