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
- The Unfolding Economic Crisis in Europe | Financial Sense
- Futures Soar On Surprise Chinese Rate Cut | ZeroHedge
- Kissinger Warns of “Fatal Mistakes” on Sanctions, Russia, Cold War | Financial Sense
- Bill Cosby And GATA | ZeroHedge
- On The Looming Wall Of Chinese Defaults, Restructuring Firm Warns "You Know It's Coming" | ZeroHedge
- Stocks Close At Recordest Highs As All Central Banks Go All In | ZeroHedge
- Great Graphic: Shifting Center of World Economy | Financial Sense
The most relevant financial news and articles from the Internets
- 17 Top Executives Share Their Favorite Interview Question | Business Insider
- Which Is America's Best City? | BusinessWeek
- Will $106 Billion Be Enough To Fix Volkswagen? | Business Insider
- China central bank cuts interest rates in surprise move | Business Insider
- Smith stars as Australia beat S. Africa, clinch series | Business Insider
- Meet The Startup Building Drones That Could Save Lives | Business Insider
- Unusual 11 Mid-... | StreetInsider.com