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Netflix, Inc. (NFLX) Message Board

  • dbergh1 dbergh1 Jan 29, 2010 7:17 AM Flag

    Question

    Why would Netflix be on Yahoo bearish list.

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    • Because there is a lot more to investing than just taking the word of some financial Hack on CNBC. So, I will list some reasons why you should fear NFLX:
      1. They rent videos throught the mail, this is an entertainment type business in connection to the movies and TV. NFLX does not build anything so they are hard press to control prices. If DVDs go up in price or postage go up in price they have do adjust cost to customers accordingly. Since they do not make a product it is much harder to control costs.
      2. Disposable income for entertainment will vary with the economy and jobs. Sooner or later people may have to make tough decisions on what to cut out of their budget and entertainment is always high on the list.
      3. Redbox stands a good chance of taking revenue not members, from NFLX. I personally love Redbox I can get new movies fast and not have to deal with salespeople. Redbox could cause NFLX members to lower the subscription services to a lower tier.
      4. NFLX is a good company but not a $63 dollar company, I think the stock is overpriced. Many investors are on a flight to quality... quality as they see it not true quality.
      So, a stock like NFLX looks attractive to them becuase it is way up in a down environment.
      5. Short Sellers- Short Sellers are some of the most educated investors out there. To sell short you have to have money and balls, these investors know what they are doing and they understand the market. But, speculationg through earnings is tough no matter long or short. Many are pulling out causing this push in the stock price.

 
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