Address the following to both peers Explain whether you agree with your peer's assumptions for revenue growth rate and or gross profit margin and why Explain other possible projections for the future revenue growth rate and the gross profit margin Peer 1 Provide the name of the company and a link the financial statements The company I chose for my project is Netflix The link to their most current 10 K is https www sec gov ix doc Archives edgar data 0001065280 000106528023000035 nflx 20221231 htm id2a4f0e6b6dd43c49a69044f9260d065 67 Project the future revenue growth rate for the next three years of the company This next year the revenue growth rate is predicted to be a 10 increase, followed by a 15 increase for the next 2 years In 2023, Netflix had a $3,161,555 increase 2024 saw a $5,216,565 75 increase and $5,999,050 62 increase in 2025 Explain the assumptions you used to predict the company's revenue growth rate(s) for the next three years Pursue further investments and gain higher earnings from every customer Project the future gross profit margin(s) for the next three years of the company In 2022 it was 39 4 and over the next three years, Netflix is projected to have as much as a 40 gross profit margin Explain the assumptions you used to predict the company's gross profit margin(s) for the next three years Investment in technology helps make this margin achievable Netflix's ability to put itself ahead of its competitors by offering some unique services Peer 2 I am currently working on Tesla, Inc as my project company Below, you'll find the 10 Ks that I used for my analysis 2022 2021 2020 I am projecting a future revenue growth of 45 , 40 , and 53 , in the coming years The assumptions that I am using is the cycle of business in which Tesla, Inc is in Currently, everyone knows of Tesla's offering, and growth will slow as sales slow I expect there to be still great growth for the company, as there is still more for them to offer consumers One notable thing is that I expect renewed interest in the company when the Cybertruck product begins and more legislation allows for limited autonomous driving For future years, I expect the company's gross profit margin to continue as it has, hovering around 23 26 This is primarily because now that the company is producing vehicles and not having massive capital expenditures, the company is likely to maintain this gross profit margin, with some minor increases for cyber truck profit

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Address the following to both peers : Explain whether you agree with your peer's assumptions for revenue growth rate and/or gross profit margin and why.

Address the following to both peers:

Explain whether you agree with your peer's assumptions for revenue growth rate and/or gross profit margin and why.
Explain other possible projections for the future revenue growth rate and the gross profit margin.

Peer 1:

Provide the name of the company and a link the financial statements.
The company I chose for my project is Netflix.
The link to their most current 10-K is:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001065280/000106528023000035/nflx-20221231.htm#id2a4f0e6b6dd43c49a69044f9260d065_67

Project the future revenue growth rate for the next three years of the company.
This next year the revenue growth rate is predicted to be a 10% increase, followed by a 15% increase for the next 2 years. In 2023, Netflix had a $3,161,555 increase. 2024 saw a $5,216,565.75 increase and $5,999,050.62 increase in 2025.
Explain the assumptions you used to predict the company's revenue growth rate(s) for the next three years.
Pursue further investments and gain higher earnings from every customer.
Project the future gross profit margin(s) for the next three years of the company.
In 2022 it was 39.4% and over the next three years, Netflix is projected to have as much as a 40% gross profit margin.
Explain the assumptions you used to predict the company's gross profit margin(s) for the next three years.
Investment in technology helps make this margin achievable. Netflix's ability to put itself ahead of its competitors by offering some unique services.

Peer 2:

I am currently working on Tesla, Inc. as my project company. Below, you'll find the 10-Ks that I used for my analysis:

2022
2021
2020

I am projecting a future revenue growth of 45%, 40%, and 53%, in the coming years. The assumptions that I am using is the cycle of business in which Tesla, Inc. is in. Currently, everyone knows of Tesla's offering, and growth will slow as sales slow. I expect there to be still great growth for the company, as there is still more for them to offer consumers. One notable thing is that I expect renewed interest in the company when the Cybertruck product begins and more legislation allows for limited autonomous driving.

For future years, I expect the company's gross profit margin to continue as it has, hovering around 23-26%. This is primarily because now that the company is producing vehicles and not having massive capital expenditures, the company is likely to maintain this gross profit margin, with some minor increases for cyber truck profit.