Dissecting The Latest Netflix Earnings Transcript

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We let our data scientists loose on NFLX’s latest conference call transcript. High-level takeaway:  NFLX is sounding a more muted tone while the Street is still excited, and the stock is at a high.

Key takeaways:

1.  Management sentiment has fallen two quarters in a row. (blue line below)

 

2.  The spread between Management sentiment and Analyst sentiment has fallen to a recent low, implying that while Management is getting less bullish, analysts are not yet changing their tone.

spread

 3. Keyword analysis and comparative word cloud analysis suggest that Management sees much less opportunity overseas than last quarter, while analysts are still interested in those opportunities.  

keywordcloud

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4. Lastly, a joined word cloud analysis shows that analysts are concerned about competitive pressures, and Management’s message is diffuse.  

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