Mark Cuban says he’s still ‘very bullish’ on Netflix and hasn’t sold a share

Investing

“Shark Tank” investor and Dallas Mavericks owner Mark Cuban is still a big Netflix bull after its weak guidance and subscriber miss.

“I haven’t sold any shares and I’m still very bullish on it,” Cuban said Wednesday on CNBC’s “Fast Money Halftime Report.” “They always offer weak guidance and it’s always been the discussion the day after earnings. … All the trends are going in their favor, more so than their competitors.”

Netflix reported fourth-quarter results on Tuesday after the bell. The company beat on the top and bottom line, but gave disappointing guidance and posted a miss on domestic subscriber growth. Shares of Netflix were down 3.6% Wednesday.

Cuban remains positive that Netflix will accelerate its growth globally as it continues to penetrate markets overseas.

“Every single new smart TV that has come out has Netflix as an option. When you go to the gym, every smart workout device has Netflix as an option,” Cuban said. “It’s ubiquitous not just here, but it’s becoming more ubiquitous globally as well … I don’t see the competition negatively impacting that at all.”

The company posted negative free cash flow of $1.7 billion for the fourth quarter. It reiterated that its cash burn peaked in 2019 and said it’s now moving slowly toward being free cash flow positive in the future.

“Streaming media, entertainment and content is a global story now,” Cuban said.

Shares of Netflix gained 20% in 2019, trailing the broad market. However, the streaming giant has had an epic run over the past 10 years, delivering a more than 4,000% return as the best performer of the last decade.

Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank,” which features Mark Cuban as a panelist.

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