We see too much optimism “priced into” Netflix’s latest results. EPS fell to 11c from $1.33 in the comparable quarter in ‘21. Analyst expectations came in at 55c. In spite of this the stock rose on very strong subscriber numbers. Subs grew 7.6M vs. the company’s projected 4.5M. Churn was kept to a minimum, with several hit shows (“Wednesday” “Harry & Meghan”) breaking records - “Wednesday” was NFLX’s second-most popular series ever and “Harry and Meghan” the streaming service’s second-most popular documentary. All this reads well, however the company’s overall revenue came in flat at +2% growth. To be fair, FX was partially the culprit here -- revenue grew 10% on a FX neutral basis. Yet signs of weakness remain - on a FX neutral basis APAC revenues declined 4% whilst EMEA revenues grew only 5% (2% deceleration). We think any sign of excitement is premature, especially because Netflix is still expensive - it trades at 25x earnings, above Disney x20 and WarnerBrothersDiscovery x10.