Billionaire investor and Dallas Maverick owner Mark Cuban remains "very bullish" on Netflix Inc NFLX despite the company's weak guidance and subscriber miss.
Cuban said on CNBC Netflix is known for issuing weak guidance. His main takeaway from the report is that Netflix is properly valued at around $140 billion, which he said is a fair valuation for the "second biggest and best media company in the world," after Walt Disney Co DIS.
Netflix Growth Prospects
Cuban said Netflix remains well positioned to grow over the many years ahead from several tailwinds. The advancement of "deepfake" technology would allow Netflix to make subtitles a thing as the past. This could prove to be a "huge advantage" for Netflix over its peers.
Also, every smart TV sold to the public has Netflix pre-installed or readily available as an option. The same is also true for new smart workout devices.
"It's ubiquitous not just here, but it's becoming more ubiquitous globally as well," Cuban said. "I don't see their competition negatively impacting that at all."
Cuban said "data is the new oil" and "streaming media, entertainment and content is a global story now."
Amazon Still Largest Holding
Cuban said his largest holding is Amazon.com, Inc. AMZN because it's both "the smartest company in the universe" and the "ultimate startup." The company is blessed with a plethora of data to better predict which business ventures are worthwhile to enter.
"The knowledge they have with artificial intelligence gives them such a unique advantage," Cuban said.
Almost Bought Roku
Speaking of streaming, Cuban said he almost bought Roku Inc ROKU last year near the $40 level. He loves what Roku is doing to take advantage of the growth in streaming video, but said Roku will need to adapt to a market where TVs no longer require external hardware for streaming capabilities.
Cuban doesn't have an opinion on what's next for the company as he doesn't follow the company as closely as he does with others. The stock trades around $135 per share.
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