TIVP059: NETFLIX (NFLX): THE KING OF STREAMING

W/ SHAWN O’MALLEY & DANIEL MAHNCKE

TIVP059: NETFLIX (NFLX): THE KING OF STREAMING W/ SHAWN O’MALLEY & DANIEL MAHNCKE

15 February 2026

Shawn O’Malley and Daniel Mahncke break down Netflix (ticker: NFLX) and discuss whether the company has finally won the streaming wars. While growth looked challenged back in 2022, Netflix has proven resilient in the face of competition and economic slowdowns by leaning into advertising and password crackdowns, with much room left to run internationally.

In this episode, you’ll learn how to value Netflix’s global content streaming business, how Netflix is positioned to benefit from the continued transition from cable to digital, what makes Netflix’s culture so special, how the company has rewritten the playbook on original content, and whether Netflix’s stock is attractively priced at current levels, plus so much more!

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IN THIS EPISODE, YOU’LL LEARN:

  • How Netflix killed Blockbuster
  • How Netflix pivoted from mailing DVDs to streaming 
  • Why Netflix’s app just “works” better than the competition 
  • What makes the company’s culture so legendary
  • Why the business works so well with two co-CEOs
  • How being a first-mover got Netflix through the cash burn phase before any competition arose
  • What Netflix is doing to sustain growth into the future
  • How to think about modeling NFLX’s intrinsic value
  • Whether Shawn and Daniel add NFLX to their Intrinsic Value Portfolio
  • And much, much more!

Disclosure: This episode and the resources on this page are for informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. For full disclosures, see link.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:00] Shawn O’Malley: Who says Netflix is not a big tech stock anymore? I mean, I don’t care. Even if they did get dropped from the FANG acronym to the Magnificent Seven, the business is still doing incredibly well from offering an ad-supported tier to password crackdowns and hit shows worldwide. Netflix has really been flexing its muscle and compounding intrinsic value.

[00:00:19] Daniel Mahncke: So when we see the stock drop 30% in six months, that definitely catches our interest with growth internationally, subscription price hikes, and more advertising layered in, I really see no end in sight to Netflix’s ability to grow earnings per share at double-digit rates for years into the future.

[00:00:41] Intro: You’re listening to the Intrinsic Value Podcast by The Investor’s Podcast Network since 2014, with over 180 million downloads, we’ve learned directly from the world’s best investors. Now we are applying those lessons to analyze businesses and investment opportunities every week, helping you uncover intrinsic value. And now here are your hosts, Shawn O’Malley and Daniel Mahncke.

[00:01:11] Daniel Mahncke: Shawn and I have slowly been ticking through the biggest names in markets from Amazon to Meta to Alphabet. And while we haven’t covered every stock in the Magnificent Seven yet today, we will be looking at another tech darling who was baked into the FANG acronym that used to be the most popular way to describe the most significant companies in the US market.

[00:01:32] Daniel Mahncke: But over the past few years, everything’s been about, well, the Magnificent Seven, which does not include Netflix. It’s a subtle shift in language, but actually, I do think the implications are significant. These types of terms can really define the eras of market history, and for Netflix to slip out of that signals a paradigm shift.

[00:01:51] Daniel Mahncke: So not to say that Netflix is some. Unknown business by any means, but it definitely doesn’t capture investors’ imaginations in the way that it did even just a few years ago, despite the business actually still chugging along pretty well. So I think that’s what caught your interest, John. So there’s still this incredible business here, but it has fallen out of favor recently. And sentiment got extremely depressed in 2022. And so by being in the spotlight a bit less than it was, perhaps there’s an opportunity here.

[00:02:20] Shawn O’Malley: Well, it’s a great way to tee things up because everyone knows Netflix is a customer and maybe as an investor, but the luster around the stock has definitely faded in markets.

[00:02:29] Shawn O’Malley: And in 2022, the business saw its first-ever decline in paid subscribers, and that spurred a panic where Netflix went from being priced as this very high-growth business to having a much more mature valuation. And then you had all these narratives set in about competition and the streaming wars, and I think that helps to explain why.

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