🧠 The ONLY Earnings Question That Matters


On September 15, 2011, Netflix reported earnings. Its stock then plunged 20%.

The drop was due to Netflix announcing that it lost subscribers after it attempted to split out its DVD business into a subsidiary dubbed Qwikster.

Millions of investors sold their shares in response to the awful news. Brian Stoffel was one of those investors, selling $5,000 worth of the stock.

That proved to be a short-sighted decision. Netflix stock is currently a 10-bagger since.

Brian Stoffel’s rash selling decision is currently a $50,000+ mistake and counting.


We aren’t saying that Netflix’s success was easy to predict. What we are saying is those who sold based on the bad earnings report missed out on owning one of the greatest stocks of the last decade.

We mention this because Netflix kicked off earnings season last night. We’re not going to dive into the details here, but we want you to remember: long-term investors should avoid knee-jerk reactions.

Instead, we think the only question that matters when you are reviewing a company’s earnings is this: Is my original investment thesis intact?

It’s easy to overlook that when numbers are flying around and stocks are making double-digit moves.

Now, if you are interested in earnings analysis, check out our YouTube channel. We’re going to be doing lots of earnings videos over the next six weeks, including Netflix’s today.

– Brian Feroldi, Brian Stoffel, & Brian Withers

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