Netflix & Alphabet: A Slightly Unhinged Take

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Right. So, everyone’s obsessing over ‘growth stocks,’ aren’t they? Like finding the next unicorn is going to solve all our problems. Honestly, it feels a bit… desperate. But fine, let’s play. Because if I have to listen to another analyst drone on about ‘synergies,’ I might actually scream. The question, as always, is durability. Can this thing still be kicking in ten years? Because I’m not looking to babysit a failing business. Two names keep popping up: Alphabet and Netflix. Both shiny, both expensive, both… potentially exhausting. Let’s unpack this, shall we?

Both companies have built brands people recognize, which, let’s be honest, is half the battle these days. It’s easier to sell something people think they want than to actually convince them they need it. Netflix, though, is the more focused of the two. Subscriptions, streaming, a burgeoning ad business… it’s relatively straightforward. They’re basically renting you stories. And, surprisingly, people are still paying. Alphabet, meanwhile, is… everything. Search, cloud, YouTube, a disconcerting amount of data collection… it’s a bit like trying to understand the internet itself. Which, I suppose, is the point.

Netflix: The Addicted Subscriber

Look, Netflix has over 325 million subscribers. That’s… a lot of people willingly handing over their money each month to avoid having to, you know, think about what to watch. The revenue growth is decent – 17.6% year-over-year – but honestly, I’m more intrigued by the expanding operating margins. They’re squeezing more profit out of each subscriber. It’s a bit predatory, isn’t it? But effective. They hit 29.5% last year and are aiming for 31.5% – that’s the kind of ambition I can get behind, even if it feels slightly… ruthless. And that ad revenue? Growing nicely, though still a small part of the overall picture. It’s like a little side hustle for a company already swimming in cash.

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Alphabet: The Quiet Omnivore

Alphabet is… everywhere. It’s the quiet force behind so much of our digital lives. Revenue up 16% year-over-year. Diversified, yes. But that’s often code for ‘complicated.’ The cloud business, though, that’s interesting. Growing rapidly, accounting for about 15% of revenue, with operating income soaring 85%. It’s the one part of Alphabet that feels genuinely… innovative. The rest feels like optimized surveillance, but hey, that’s a business model, I guess.

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So, Which One? (Don’t Ask Me, I’m Just Here for the Drama)

Honestly? Alphabet. It just feels… less precarious. Valuation is roughly the same – P/E ratios of 33 and 34 – but Alphabet’s diversification is a major plus. They’re not reliant on convincing everyone to stay glued to their screens. Netflix is a good business, don’t get me wrong, but it feels… single-minded. And then there’s the Warner Bros. Discovery acquisition. Eighty-two point seven billion dollars. That’s… a lot of pressure. It’s like they’re trying to build a castle on sand. Sure, it could work. But it could also collapse spectacularly. And frankly, I’m not in the business of betting on spectacular collapses.

Look, I’m a contrarian. I like to zig when everyone else zags. But even I have to admit, sometimes the obvious answer is the right one. Alphabet is the slightly less insane option. It’s diversified, it’s growing, and it’s not about to drop a bomb of an acquisition on its own head. It’s not exactly thrilling, I’ll grant you. But sometimes, boring is good. Especially when your money is involved. Now, if you’ll excuse me, I need a drink. All this talk of growth stocks is giving me a headache.

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2026-01-28 10:52