Netflix Inc. (NFLX:$163.315,0$-6.245,0-3.68%) also got a lift, rising almost 2%, to as high at $174.23. Bernstein research analyst Carlos Kirjner raised his price target on Netflix's (NFLX:$163.315,0$-6.245,0-3.68%) stock to $125 a share from $71, but left his rating on the company at market perform, or neutral.
In a research note, Kirjner said he is "skeptical Netflix (NFLX:$163.315,0$-6.245,0-3.68%) will reach 50 [ million] or 60 million domestic households" for its video-streaming subscription service, and will most likely hit a steady level of about 40 million homes in the U.S
Netflix is a sucker bet long-term. In the long run it's a loser unless they can figure out how to get their stuff past the last mile of wire and for cheap. Too much competition in this area. consider going short soon. or be a fool and get caught on the way down with your pants down.
It is all about value. Mkt cap is now at $9b. Assume it will get 50 million subscribers at $100 annually, income stream would be $5b from US alone. With cable now running at $500 annually minimum, it should not be hard to achieve in mho.
Next is how much are folks willing to pay $9B for $5b business that requires big contributions to the content providers.