Mark Cuban Still Hasn’t Sold a Share of Netflix Despite Dismal Outlook

Mark Cuban is a big investor in Netflix and he has no plans to sell any shares.

The streaming giant beat on both the top and bottom line in its fourth quarter financial report on Tuesday but had given dismal guidance. The company also missed on domestic subscriber growth.

“I haven’t sold any shares and I’m still very bullish on it,” Cuban said. “They always offer weak guidance and it’s always been the discussion the day after earnings.”

Cuban, who is a “Shark Tank” investor and the owner of the Dallas Mavericks, was speaking on CNBC’s “Fast Money Halftime Report” on Wednesday about why he is bullish on the company.

He said, “All the trends are going in their favor, more so than their competitors.”

“Every single new smart TV that has come out has Netflix as an option. When you go to the gym, every smart workout device has Netflix as an option,” Cuban said. “It’s ubiquitous not just here, but it’s becoming more ubiquitous globally as well … I don’t see the competition negatively impacting that at all.”

“Streaming media, entertainment and content is a global story now,” Cuban added.

Netflix reported revenue of $4.2 billion during last year’s fourth quarter, leading to net income of $134 million, or diluted earnings of 30 cents per share, and 8.84 million new paid streaming subscribers.

In the US, Netflix added just 420,000 paid net subscribers, below its guidance of 600,000. This marked the third quarter in a row where Netflix missed its targets for US subscriber growth.

Shares of Netflix saw gains of 20% last year.

Disclaimer: We have no position in Netflix Inc. (NASDAQ: NFLX) and have not been compensated for this article.