Clark Biweekly 10 24 24

Author

Anthony Hazzard
October 24, 2024

Netflix has just completed its most profitable months since its founding in 1997. But who do they view as their top competitor? Find out more later in this email. 

💵 Today’s Top Stories
Medicare Advantage

Clark has a bone to pick with Medicare Advantage Plans and the salespeople who profit off of selling them to unsuspecting customers. Read more.

Car Insurance

Insurance companies allow you to sacrifice your privacy (via a device that monitors your driving) in exchange for cheaper rates. In what ways can this backfire on you? And how else can you save? Read more.

Credit Card

Scammers are sending fake credit card alerts that mimic what real credit card companies send. If they ask you to talk to them, don’t do it, as Clark explains. Read more.

Pharmacy

Mark Cuban attacked them with his new company Cost Plus Drugs. Americans despise them – when they’re aware of their existence. What is the dirty secret behind expensive medications? Read more.

IRA

There are pros and cons to funding your IRA up to the allowed limit early in the year. However, long-term, it’s hard to beat (extra) time in the market. Read more.

📺️ Netflix Just Completed Its Most Profitable 3 Months Ever

Netflix just recorded its most profitable quarter in the company’s history with a net income of more than $2 billion and a profit margin greater than 20%.

The company surprised and delighted shareholders on its earnings call and as of this writing is up 65% year to date.

This all after the streaming industry sent a clear signal that its “land grab” days are over and that it’s buckling down to focus on profitability. Netflix even told everyone it will stop reporting subscriber numbers after this year.

Still, the company that started as a mail-only DVD service in 1997 has, in the last five quarters, grown its subscriber base in Asia (+24%), Europe/Middle East/Africa (+15%), Latin America (+13%) and United States/Canada/Australia/New Zealand (+10%).

It continues to broaden its subscriber lead over Disney+ and now views YouTube as its top competitor.

“With the most expensive Netflix package now costing $22.99 per month … It turns out that raising prices, while still growing your customer base, is an unsurprising recipe for success,” Chartr reported. “Netflix’s third quarter was the company’s most profitable in its history, with profits up 41% year on year.”

📊 Stat of the Day

🚗 9.3%: The share of U.S. car dealerships (~17,000 total) that the 10 largest dealership groups own. It’s an all-time high. The top 150 dealership groups also accounted for nearly one-quarter of all 2023 sales. It’s getting harder to buy dealerships, but it’s lucrative for those at the top.

💰️ Deal Alert: Today’s Top Deals
Wayfair Deal
Avalon Cruise
Two credit cards
🎙️ Podcast

A recent survey revealed the top convenience stores for customer satisfaction. If you have never heard Clark talk about convenience stores like Wawa, Sheetz, and Buc-ee's, you are missing out on the excitement! (Let us know what your favorite convenience store is in the comments below!) Also, we’ve seen a great rise in entrepreneurship over the last few years which is great for our economy. In fact, a stat from the New York Times says businesses formed from 2020-2022 have created 7.4 million new jobs in the U.S. Clark is encouraged by this wave of opportunity.

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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