It was a very strong report The stock tanked because it already had a huge runup into earnings and the guidance was slightly weak. It has nothing to do with online downloads. NFLX will probably recover, but I woudn't want to own it anyway. There are much better stocks.
say goodbye to NFLX and BBI, THERE IS NO NEED TO RENT MOVIES ANYMORE, THE DVD WILL BE FORGOTTEN OVER THE NEXT 2-4 YEARS, EVERYTHING IS GOING DIGITAL.. there is no need to go out and rent movies or order them from NFLX when you can just order them off your set top box from your couch.... NFLX is old fashion now, they better start jumping into video on demand or they will be bankrupt over the next 5 years.
"NO SERVICE THAT CAN EVEN COME CLOSE TO NETFLIX" Who are you kidding, do you even know what a set top box is and what its going to do to the likes of netflix and blockbuster???? There is a service that just came out 2 months ago called Popcorn, and also another one called VONGO. NFLX and BBI have EXTREME COMPETITION...
You misunderstood me, there are tons of digital download / ondemand services i agree, but none come close to netflix. I did quite a bit of research in the past actually. 1) All the instant movie download/rental such as amazon unbox, cable ondemand, apple, etc..all cost avg $3.99 for ONE new movie. It is not in the same league / target audience as netflix. 2) All the monthly flat fee rental similar to netflix does not come close. The only one with almost as a large inventory / turn around time as netflix is blockbuster, but they are still way behind. 3) Netflix is now also offering FREE streamed movies to its monthly subscribers, noone can match it. The # of instant watchable movies are also growingly weekly. So the company is well positioned for the eventual transition to pure digital movie viewing in 5-7 years (with the bluray and 1080P tvs now taking center stage, it will take at least that long to phase out physical discs) It's the same as ipod vs other mp3 players, probably even more so. I take back my entry target though, today is a bloodbath so we may very well break the $30 support. Will wait and see, but definitly a good long term investment. EDIT: vongo and all those only have old movies...they dont have any new dvd release until a few(?) months later, it's nothing new. ps i dont have a position in nflx
I hope you all did well today. I just made alot of money from all the puts i bought last thursday. I closed 3/4 of this position still holding some may 35 puts. Looking for the next short candidate and well i have been loading up on CF puts the past two days. Anyone ready for another play?