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
- Happy Thanksgiving! | FundMyMutualFund
- 3 Things Worth Thinking About | ZeroHedge
- Something Appears To Be Going On With Gold | ZeroHedge
- Gary Shilling on Interest Rates, Deleveraging, and Corporate Profits | Financial Sense
- California Housing Market Cracks in Two, Top End Goes Crazy | ZeroHedge
- STTG Market Recap November 26, 2014 | FundMyMutualFund
- Notes on Russia | Financial Sense
The most relevant financial news and articles from the Internets
- How 4 Minutes Of CGI Dinosaurs In ‘Jurassic Park’ Took A Year To Make | Business Insider
- Apple's Forgotten Cofounder Is Auctioning Off A Collection Of... | Business Insider
- Lufthansa Lost My Luggage For Three Months And Randomly Returned It With A Hefty Check | Business Insider
- British detective writer P. D. James dies aged 94:... | Business Insider
- This Is Not A Low-Wage Recovery — It's A Medium-To-Low-Wage Recovery | Business Insider
- Here Are The UK's Best Black Friday Deals | Business Insider
- 'The Babadook' Is Horror At Its Finest | Business Insider