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  • Stonks: $NFLX raise prices, $DJT lost money, $HIMS deep dive

Stonks: $NFLX raise prices, $DJT lost money, $HIMS deep dive

Author

Michael Luo
May 21, 2024

Here’s the latest “under the radar” stock news from Reddit in the last 24 hours that you don’t want to miss, as picked by Fluid Bot’s AI. And don’t miss out on the $HIMS deep dive at the end!

  • Netflix has raised prices for Australian users by at least 11%

  • “As we add more entertainment value, then, of course, we can go back to our subscribers and ask them to pay a little bit more to keep that virtuous cycle moving,” Netflix co-CEO Greg Peters said

  • Netflix has also raised prices in other countries recently

  • Netflix has 270 million global subscribers

  • Trump Media & Technology Group, majority owned by former President Donald Trump, lost over $300 million in the first quarter with minimal revenue

  • Truth Social remains a small player in social media with just 113,000 average daily active users in the US

  • The company attributed the losses to non-cash expenses and one-time payments related to a merger

  • Despite the losses, Trump Media stated it has sufficient cash to fund the business for the foreseeable future and is open to potential mergers and acquisitions

  • Experts have raised concerns about the company's high valuation compared to its financial results

  • Dutch Bros (BROS) is an Oregon-based company that sells coffee and sugary drinks

  • Despite rapid expansion, Dutch Bros had positive income last quarter with increasing same-store sales and revenue

  • Dutch Bros has experienced steady revenue growth, with an IPO in September 2021 raising $484 million

  • Plans to open 4000 more stores, currently have 800+

  • Comparison to Nike in the sports apparel industry in terms of potential growth and branding

  • Potential increase in business due to Starbucks boycotts for political reasons

 

I read through $HIMS latest earnings (with the help of AI) so you didn’t have to. Here’s what you need to know:

🤖 Recommendations by AI 🤖:

  • Buy this stock if:

    • You see potential in the profitability boost from the new weight loss drug at $199/month.

    • You are confident in the effectiveness of their marketing strategy to grow subscribers.

  • Sell/don't buy this stock if:

    • You are concerned about the high dependency on marketing expenses, which are 50% of their costs.

    • You are wary of potential market saturation or competition that could limit subscriber growth.

🎉 Highlights 🎉

  • Revenue was $278.2 million Q1 2024 compared to $190.8 million Q1 2023, an 46% YoY increase.

  • Net income was $11.1 million for Q1 2024 compared to a net loss of $(10.1) million for Q1 of 2023.

    • HIMS is now profitable!

  • Monthly Online Revenue per Average Subscriber stayed constant at $55/m, which means HIMS mainly relies on new subscribers coming in and current subscribers retaining.

    • New subscribers jumped 41% YoY

    • Marketing is a big driver of growth - almost 50% of their expenses come from marketing

  • With new weight loss drug at $199/m, there's potential to increase both subscribers and revenue per subscriber

    • Big players are currently Novo Nordisk ($NVO - $450 billion market cap) and Eli Lilly ($LLY - $760 billion market cap)

Unknowns

  • How effective & safe is the new weight loss drug. They’re technically not FDA approved!

  • How effectively they can market & acquire new users for their weight loss drug

  • How good their margins are. They sell it for 85% less than the FDA approved drug!