Spectacles and Speculation: A Market Divertissement

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The vulgar obsession with numbers, one finds, continues unabated. Yet, even in the most prosaic of markets, a discerning eye can detect a certain… elegance. Netflix, having undergone a rather democratic division of its shares – a gesture, one suspects, intended more to broaden access than to elevate value – now languishes a full 43% below its former glories. ServiceNow, similarly humbled after its own arithmetic rearrangement, trails its peak by a respectable 56%. It is a curious thing, this tendency of fortunes to ebb and flow. One might almost suspect a sense of irony at play.

Baird, with a boldness that borders on the charming, values Netflix at $150 per share. A rather optimistic assessment, to be sure, implying a 95% ascent from its current, somewhat beleaguered, position. The consensus, as expressed by a chorus of 49 analysts, settles at a more modest, yet still agreeable, 44% upside. One gathers that hope, however cautiously expressed, still flickers in the hearts of the financial cognoscenti.

Morgan Stanley, ever the pragmatist, posits a $210 valuation for ServiceNow, a proposition that promises a rather dazzling 103% return. The broader analyst community, though less flamboyant, concurs with a 75% potential increase. It is, one observes, a marketplace brimming with possibilities – though, naturally, few will be realized.

Investors, it seems, are captivated by these stock divisions. They occur, conveniently, after periods of substantial appreciation – a clear signal, one presumes, that the company has already had its moment of brilliance. A rather late appreciation, wouldn’t you agree? Nevertheless, let us examine the particulars of Netflix and ServiceNow.

Netflix: The Illusion of Endless Entertainment

Netflix, the purveyor of dreams – or, at least, of cleverly packaged distractions – reigns supreme in the streaming kingdom. It boasts the most subscribers, the most engaged viewers, and commands a larger share of our increasingly fragmented attention spans than any competitor (excluding, of course, the endless vortex of YouTube). This dominance, naturally, positions it well in a market projected to grow at a rather robust 22% annually through 2030. A statistic, one suspects, that will be revised downwards before the decade is out.

Netflix has distinguished itself through its original content. With a larger audience and more viewing hours than its rivals, it possesses a wealth of data to feed its algorithms, informing its content creation decisions. Consequently, its originals consistently top the charts. In fact, the company dominated the streaming landscape in 2025, claiming seven of the ten most popular series. A triumph of quantity over quality, perhaps, but a triumph nonetheless.

The company’s audacious bid to acquire Warner Bros. Discovery’s streaming and studio assets for a rather staggering $83 billion has, predictably, unsettled the market. The assumption of such substantial debt to fund this venture threatens to curtail its capacity for original content creation. A curious irony, given that content is, ostensibly, the very lifeblood of the enterprise. However, the acquisition would grant Netflix access to coveted franchises like the DC Universe, Game of Thrones, and Harry Potter. Intellectual property, one suspects, is the true currency of the modern age.

Wall Street anticipates a 22% annual increase in Netflix’s earnings over the next three years, aligning with the broader industry forecast. A reasonable expectation, perhaps, but one that hardly justifies the current valuation of 30 times earnings. While a 95% return in the coming year may be overly optimistic, the current price presents a solid opportunity for the patient investor – or, indeed, for anyone with a penchant for calculated risk.

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ServiceNow: The Automation of Existence

ServiceNow, one might describe as an enterprise control tower. Its platform integrates and automates workflows across disparate departments, from information technology to human resources. A rather chilling prospect, when one considers the implications for human agency. Gartner, a consultancy of impeccable reputation, recently recognized the company as a leader in business orchestration and automation technologies. A distinction, one suspects, that carries a subtle undercurrent of menace.

ServiceNow is particularly dominant in the realm of IT software, assisting businesses in optimizing infrastructure costs and performance. The company has even incorporated generative AI capabilities into its software, summarizing content, surfacing insights, and building workflows. Gartner has further lauded the company’s leadership in artificial intelligence applications for IT Service Management. A testament, one might argue, to our collective surrender to the machine.

ServiceNow recently reported solid fourth-quarter financial results. Revenue rose 20% to $3.5 billion, and non-GAAP net income increased 26% to $0.92 per diluted share. Management anticipates even faster sales growth in the first quarter. CEO Bill McDermott, with a touch of hyperbole, declared, “There is no AI company in the enterprise better positioned for sustainable, profitable revenue growth.” A bold claim, one suspects, designed to distract us from the unsettling implications of its technological prowess.

ServiceNow’s stock has suffered a decline of 56% from its peak, partly due to anxieties surrounding the disruptive potential of AI code generation tools. However, Wall Street anticipates a 19% increase in the company’s adjusted earnings in 2026. This makes the current valuation of 29 times earnings appear rather attractive. While a 103% return in the next year may be unlikely, investors should still consider acquiring a small position. After all, more than 85% of Fortune 500 companies rely on ServiceNow, rendering widespread AI-driven displacement improbable. A comforting thought, perhaps, though one tinged with a certain degree of resignation.

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2026-02-25 12:26