Netflix stock crash: What can we learn with statistics?
Netflix is not chilling. 24% drop of the stock in few hours. Let's see the 2 things we can learn from this.
What's the CAUSE? (of course I talking about causality, not finance :) )
Many people around the internet argue that it's caused by what the same people would call "wokeness".
BUT, Could it be something else? (first tool I present from my first aid statistics in my TEDx: • How to question numbers and prevent manipu... ). Could it be rather the increased competition by other companies, or the fact that they exploring a version with ads?
We have just one Netflix and we lack the counterfactual, the world with netflix but without increased competition or without version with ads, or with different content. So it seems impossible to claim what is (are) the cause.
However here is what we can learn two things and also reflect what we should do when something similar happens to our company:
1:10 1st Lesson: Sudden drop, sudden cause
2:42 Causality is everything
3:42 Real underlying cause?
4:20 2nd Lesson: everything is multifactorial
5:35 What can we do (when we face such a situation with our company with our projects)?!
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