Netflix shares trying for a Comeback
Netflix Inc (NFLX) is creeping up slowly from its 12 month low, its now regained 9% from its bottom of $56.55. Recall Netflix fell from $80 a share overnight to the low $60 range just weeks ago after it disappointed the world on its Q2 earnings call.
The company's Q2 call came down to lowered expectations on subscriber growth and the slow death of its DVD business. In order for Netflix to get back its $300 share price, where does the growth come from? Is the future for Netflix's growth dependent on its breakout into Europe and abroad?
The quick answer: No one is willing to pay a high multiple on Netflix shares if they can't deliver the growth and add subscribers.
Netflix believes it will be at 7 million subscribers by the end of 2012. If they don't hit that number and if we get any more warnings its an instant 52-week low for Netflix shares.
At this point to go long on Netflix is a leap of faith that they are going to hit their numbers. If they don't, shareholders will lose.
MASTERY Bottom line:
Mastery is keeping an eye on Netflix and at this point its beginning to look 'Netflixy'. With a decent bounce from its 12 month low, its time to add it to your watch list.
However if you are going to hold Netflix get ready for a bumpy ride if they deliver any more bad news in the coming weeks.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Trump Slams Clinton Foundation As "Most Corrupt Enterprise In Political History" After Latest Donor Revelations | ZeroHedge
- The Only Chart Needed To Understand The Global Oil Market | ZeroHedge
- US Urges Citizens In Afghanistan To Leave Country | ZeroHedge
- What's Wrong With This Picture? (Again) | ZeroHedge
- Why Today's 2 Year Auction Is Important | ZeroHedge
- What Happens When Central Banks Become Major Buyers in the Stock Market? Case Study: Japan | Financial Sense
- Children Of The American Police State: Just Another Brick In The Wall | ZeroHedge
The most relevant financial news and articles from the Internets
- Microsoft's very first Surface was this largely forgotten mega-tablet that Bill Gates... | Business Insider
- No one really gets punished for causing danger... | Business Insider
- 10 facts reveal the absurdity of Pablo Escobar's wealth... | Business Insider
- Jennifer Lawrence tops the list of the highest-paid actresses in the world right now | Business Insider
- A surprisingly simple breathing technique for teachers can help students do better... | Business Insider
- This Google Maps hack makes travel planning easier | Business Insider
- 9 things incredibly attractive people do | Business Insider