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 Last Time Americans Felt This Good About Stocks, The Dot Com Bubble Burst 2 Months Later | ZeroHedge
- ITR Economics: 2019 Recession, 2030 Depression | Financial Sense
- AG Sessions Makes Surprise Sanctuary City Announcement; Vows To Withhold Funding | ZeroHedge
- This Is The 6 Page Letter Delivered From The UK To The US Triggering Article 50: Full Text | ZeroHedge
- "The End Of Truth" - Hayek Saw It All Coming Over 70 Years Ago | ZeroHedge
- House Intel Committee Cancels All Meetings For The Week: "Playing An Absurb Political Game" | ZeroHedge
- Why Foreign Robots Are The Real U.S. Job Killer | ZeroHedge
The most relevant financial news and articles from the Internets
- Former State Department official: Evidence of collusion between Trump and Russia... | Business Insider
- The Guardian is suing ad tech company Rubicon Project (RUBI) | Business Insider
- The FDA just approved a new drug to treat eczema... | Business Insider
- There's a way to invest in a cleaner environment, and the market is booming | Business Insider
- Drake just broke his most impressive record yet | Business Insider
- Deadly heat stress could threaten millions of people — even if climate targets are reached | Business Insider
- Restoration Hardware pops after sales forecast beats expectations (RH) | Business Insider