However, the price is too rich for now. As in all major changes in operation, something will disappoint and the stock will drop.
The stock price will remain high for the quarter end close as funds will buy this stock for window dressing. Within a few days after 9/30, the buying pressure will drop substantially, and the selling pressure might come in creating a drop in the stock price. I expect a pull back to 48, the price gap to 52.
What I don't understand is why put so much faith in the cloud? It is a method of delivery. How is the product? I am sure that the product is very good, but it does not justify this rich run up. (I suspect fund buying for window dressing.) This change has taken place for 1 year now. The first 1 million subs is easy picking. The second million subs might be tougher. At the end of the day, it is profits that counts. I just have a feeling that they are doing all they can to increase subs count. Once they disappoint on the subs count, watch out!!! I would expect a PE of 30 and this means stock price of about 35.