Discussion in 'Stocks' started by EliteTraderNYC, Jan 24, 2013.
Nice earnings surprise, wacko stock.
Short covering. People are prob desperate to dump.
I hadn't seen it until last night but the short interest got really high.
Icahn having a party. He doubled his money in like 3 months and it wasn't a small postion - like $500MM.
I got burned on the f*cker. Now daytrading it to recoup the losses.
40% pop is overdone but this stock is always a yo-yo at earnings. Should have done a straddle/strangle instead but didn't do it in time.
a cajone popper and priced to perfection....
the game is all math.
Man, another move. Hope no one decided to hold short over night.
IB hasn't had any short inventory for NFLX since yesterday. Probably explains why it keeps going higher. I've tried to put it a short since noon yesterday and haven't gotten a share.
Loving NFLX here, got in at the 125 strike at .20$ before earnings. Sold too early when it hit 24$ the next day. It's at 42$ today, could you imagine
This thing is overdone right now. But momentum makes it hard to determine when to short. The thing could hit $200 in the next week.
This stock is flying on nothing. From Seekingalpha:
"Falling profits and rising costs
Yes, the stock didn't post a loss as analysts were expecting, but nevertheless earnings actually fell 92% from a year earlier. Additionally, the growth in revenues, which used to be 32% comparing Q4 2011 and Q4 2010, slowed to a mere 7% this last quarter.
The stock is actually flying pre-market, though: it must be the subscribers growth then, clearly subs additions must have accelerated suddenly. Well, turns out, subs growth actually slowed compared to one year ago, from 24% to 20%.
Put it in perspective: at the end of 2006 subs were 6.3 million and net income stood at $14.9 million. Six years later, subs have more than quintupled to 33 million, while net income didn't even manage to double.
One of the main causes? The gargantuan deals Netflix is sealing with content providers, which allow the company to let its user stream more content (and therefore attract more of them), but at the same time have a massive impact on the income statement. Just look at the last major deals Netflix manage to sign:
Dreamworks deal, late 2011
Disney deal, late 2012
Time Warner deal, beginning of 2013
Each of these deals is estimated in the hundreds of million dollars, the burden of which might get compensated by subs fees, but which clearly offers no certainty of growth in earnings by itself."
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