RJ Hamster
Déjà vu for stocks?
Dear Reader,
If you’re the least bit worried about where markets are headed… or if you’re biding your time right now, waiting for the froth of AI Mania to blow over…
Why? Let me back up for a second. See, just over a year ago, I stood on a stage in Las Vegas, Nevada at our annual Alliance Conference… and I delivered a controversial prediction…

I stood in front of the crowd and I told them – urged them, even – NOT to retreat from the market. And NOT to try to time anything else that was going on in stocks at that time.
Now, I don’t know if you remember what the mood was back then.
Worried investors had lots of reasons to step aside – war, a bizarre election cycle, China, Putin, inflation – so I didn’t fault anybody for being nervous.
Just the same, anybody who stayed in got to see the S&P shoot almost 20% higher. The Nasdaq rose over 30%. In fact, more than 400 stocks have doubled since the start of 2025.
I’m telling you this because I know you might be just as worried now.
But here’s the thing…
What if all those dark predictions are dead wrong – again?
From where I sit, that’s exactly the case. Certain stocks and sectors are STILL a better opportunity than you’re being told. And there’s still much more room for you to make money.
In my brand new presentation, I’ll walk you through why I’m convinced that’s true.
Specifically, I show you in the video why we’re headed for a powerful new phase of the current bull market. I call it the Melt Up Tsunami.
It shows that more than $7.4 trillion in cash could soon start flooding into stocks… sending already “high” shares even higher…
And sending a lot of tickers you’ve never heard of before soaring too.
I even name my #1 stock to buy right now, free in the video.
The bottom line is simple: I’m not positioning for an immediate crash – quite the opposite – and you shouldn’t be either.
What’s coming could offer you one of the biggest wealth-growing windows for your cash in decades. You do not want to miss it.
Turn up your speakers and click this link to see for yourself.
Regards,
Brett Eversole
Senior Analyst, Stansberry Research
Featured Story from MarketBeat Media
Is Netflix Making a Calculated Play for the Dow Jones?
Written by Jeffrey Neal Johnson. Published 11/29/2025.
In mid-November, Netflix (NASDAQ: NFLX) shares began trading at a new, more accessible price following a 10-for-1 stock split. While the move instantly made Netflix’s stock price more affordable for a broader range of investors, it also ignited speculation across institutional trading desks. The decision to bring the share price down from over $1,000 to the much quieter neighborhood of about $107 was not just cosmetic; it may have been a calculated signal of the company’s ambition to join the ranks of the market’s most established industrial names.
With a market capitalization of approximately $455 billion, Netflix has long had the scale of a blue-chip company. However, its high share price made it an outlier. Now, trading around $107.47 per share, the entertainment-sector streaming pioneer is signaling that it is ready for a new role on Wall Street’s biggest stage. This strategic repricing may be a deliberate audition for a coveted spot in the Dow Jones Industrial Average (DJIA).
The Price-Weighted Puzzle: Netflix’s Key to the Club
To understand why the split matters, it helps to know how the Dow works. Unlike the S&P 500, which is weighted by a company’s total market value, the Dow is a price-weighted index. In simple terms, a stock’s price — not its overall size — determines its influence on the index’s daily movement. For example, a $1 move in a $200 stock has twice the impact on the Dow as a $1 move in a $100 stock.
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Key Points
- The recent stock split removed the primary mathematical barrier that had previously prevented Netflix from being considered for the price-weighted Dow Jones Industrial Average.
- The company’s impressive free cash flow and consistent profitability demonstrate its successful transition into a financially mature and stable enterprise.
- Potential inclusion in the Dow would trigger automatic buying from index funds and cement the stock’s status as a long-term, blue-chip core holding.
That structure created a mathematical barrier for Netflix. A stock trading at $1,000 or more would have a disproportionately large impact, skewing the index and making inclusion impractical. For years, that kept Netflix on the sidelines despite its industry dominance. The 10-for-1 split neatly addresses that problem. At its current price, Netflix would fit comfortably among the 30 members. By aligning its share price with the index’s norms, Netflix has effectively positioned itself to be considered for admission.
The Blue-Chip Transformation: Netflix’s Financial Graduation
A suitable stock price is necessary but not sufficient for an invitation to the Dow. The selection committee also favors companies that demonstrate financial stability and industry leadership. For years, Netflix was the quintessential growth stock, spending heavily to acquire subscribers. That chapter appears to be over. The company has transitioned into a self-sustaining, profitable enterprise — a key trait of a Dow component.
The financial evidence for this transformation is compelling:
- Strong free cash flow: Netflix is on track to generate approximately $9 billion in free cash flow in 2025. Free cash flow represents the cash left after operating expenses and capital expenditures. It enables a company to fund content, pay down debt, and repurchase shares without additional borrowing, signaling financial independence.
- Consistent profitability: The company reported $3.25 billion in operating income in the third quarter of 2025. Although a one-time $619 million tax charge in Brazil reduced the quarter’s operating results, the underlying business demonstrated strong efficiency. Without that charge, Netflix would have exceeded profitability forecasts.
- A diversified revenue engine: Financial health is no longer tied solely to subscriber growth. The ad-supported tier is a meaningful new revenue stream, on track to double its revenue in 2025 and now supported by Netflix’s proprietary ad-technology platform. This diversification creates a more predictable, resilient business model — a hallmark of blue-chip companies.
Musical Chairs on Wall Street: Netflix Eyes a Seat
The Dow Jones Industrial Average is an exclusive group of just 30 companies. For Netflix to be added, another company must be removed. That decision is made by a selection committee at S&P Dow Jones Indices and isn’t governed by a strict formula. The committee aims to have the index reflect the broader U.S. economy by including leaders from key industries.
Historically, companies removed from the Dow often show lagging stock performance, lost leadership positions, or represent industries becoming less central to the economy. While it’s difficult to predict which member might be replaced, the case for adding the undisputed leader in streaming — a dominant force in modern media consumption — is strong, particularly if an existing member from a legacy sector is underperforming.
What Dow Inclusion Means for Netflix
If Netflix were added to the Dow, its stock would likely experience an immediate impact commonly called the Dow Effect. Index funds and exchange-traded funds (ETFs) that track the DJIA would need to buy Netflix shares when they rebalance, creating automatic buying pressure that can push the stock higher.
Beyond an initial price bump, inclusion would confer prestige and help cement Netflix’s status as a blue-chip holding. It could attract a new class of conservative, long-term investors and potentially reduce volatility over time. Inclusion can also lower a company’s cost of capital, making it easier to finance future growth. Whether an invitation arrives in the coming months or not, the strategic and financial moves behind this possibility are broadly bullish. The stock split, together with rising free cash flow and sustained profitability, signals that management increasingly views Netflix not as a speculative growth play but as a core holding for the future.
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