Netflix faces subscriber risk from live sports pivot; AI content benefits expected but stock needs to drop to low 60s/$59 for buying opportunity.

Moving on to Netflix, the stock started the week at $70. Oh, my God. The stock is essentially confirming a new low , having fallen more than 4% this week to close at $67.

This came after the co-CEO said something she didn't want to hear. He says the streaming giant isn't growing as fast as he'd like. So, what does that mean? They will likely have to invest more of that abundant free cash flow in sports and live events.

Currently, the company spends only 5% of its $ 20 billion annual budget on live programming content, but he noted that many subscriptions come from these events , which helps reduce the cancellation rate .

This turns the investment hypothesis in Netflix on its head , as they are now in the same arena as companies like Apple, Google and Amazon to compete for these huge contracts. Obviously, they will have to make a profit from it, and this may alienate some current customers who subscribed for the original content and are not interested in sports or live events.

It's a complicated situation Netflix finds itself in, and I think the stock price will be affected by the move to "WWE" as Netflix has become the exclusive home for this event in Japan.

But the stock received an upgrade this week from Deutsche Bank, which sees international growth as a catalyst, in addition to potential gains from artificial intelligence. I'm not entirely sure how Netflix will benefit from artificial intelligence, although they will likely have a lot of content produced through it.

I'm not talking about poor AI content. I'm talking about movie screenings where you can , instead of spending a lot of money on shooting secondary shots or specific shots like a boat at a particular time of night.

Okay, now you can simulate that. I was able to simulate this in the past, but now you can do it on a large scale and at a very low cost. Therefore, I expect more cinematic releases that utilize artificial intelligence, and I clearly believe that this will benefit Netflix from a subsequent perspective .

Netflix, wow . We were wondering last week, will this continue to decline? The prevailing or average trend for this stock is downward. Now, what I like about Netflix is that if you zoom in on the graph and view it on a weekly basis, you'll find that you're already starting to converge with the long-term overall trend.

That won't happen until the stock drops to the lower 60s range, perhaps even down to the 59 level. I think that will trigger the first real and obvious opportunity to buy the dip.

However, you should be careful at those levels as well. Risk management should be taken into account.