You are crazy playing this stock, long our short. 2 upgrades in a few days span, definately money to be made here. But I dont trust this anymore. I just hope the longs/shorts know what they are messing with here. I know I learned my lesson =), been trading for years and this stock left a foul taste in my mouth even when I was up. I mean look at what this firm said after they rated it strong buy.
In the Credit Suisse First Boston report, Heath noted investor risk is "significant," given the price increase, new competition and higher marketing spending, among reasons.
LOL! Who buys this crap?
"That said, we believe at 20 times our 2005 EPS estimates, investors are being paid to take these risks," Heath wrote.
Heath expects Netflix to earn $1.41 per share in 2005, up from an estimate of 52 cents a share in 2004.
> expects Netflix to earn $1.41 per share in 2005, up from an estimate of 52 cents a share in 2004.
This is theoretically possible, but it would require nflx to cut expenses. Slow the customer growth and forget about VOD future. Which would signal end of fast growth and no base for even 31/1.41 = 22 p/e A catch 22 if I ever saw one :-)