We’ve written about it before on this site, but the pandemic and the subsequent lockdowns have now become a giant industry and those benefiting from it likely don’t want it to ever end.
Of course, they probably won’t get the final say in things, but these companies do have a big megaphone and are able to pump out their propaganda to try to help their cause.
The latest example is from Netflix which put out their financial statements for the most recent quarter and lets just say, the news isn’t good since the lockdown ended.
As you can see on the chart below, the only time Netflix ever had a positive cash flow was due to the lockdowns.
Maybe that’s why they pushed so many virus and doomsday themed movies, they wanted people to be afraid and stay locked inside their houses forever.
Even worse, Netflix missed their subscriber growth by a huge margin. Forecasting growth of 6.2 million subscribers, but only adding 2.4 million. A huge miss and a sign that Netflix has no chance of going cash positive again unless there is yet another lockdown.
Of course, this is just one example, but there are many others. There are so many companies that did well during the lockdown that it gave them no incentive to go against the narrative or even push back. In fact, many leaned into it since it was padding their bottom line.
But it looks like for Netflix at least, the bill has come due and now they find themselves in a worse place than before this all started. Something I’m sure many other “pandemic winners” on Wall Street are about to find out.
Note: We’ve started publishing articles on Substack shortly after they appear here. It’s free and we’re doing it since some readers enjoy visiting and subscribing to their favorite content on Substack. If you’re interested, you can click here to visit and subscribe. Thanks!