A nice tailwind Maybe Blockbuster needs to become a mining company, because the movie rental business hasn't been exactly profitable for it. It might file for bankruptcy protection and it has a $1 billion debt load hanging over it. The announcement that it was postponing its annual meeting for a month to give it more time to avoid getting kicked off the New York Stock Exchange actually gave investors hope that it might strike gold somewhere.
Beautiful: NFLX has no moat, no way to prevent competitors from entering and equalling or bettering what they do.
They don't control the content. They don't even have control over the "medium" that they use to get the product to their customers. i.e. the internet, the postal service.
Their ultimate destiny is under the control of others.
Good Company, Okay, but 45 times earnings? NO WAY.
Percentage increase in growth slows, Law of Big Numbers rears its ugly head.
Suppliers and competitors say: We can do this too. And they will, some very successfully and others not so well but they will dilute NFLX's customer base.
Also, How many movies and TV shows can Americans watch or want to watch. Maybe this Fad will have a retreat like so many others.
The NFLX stock price is definitely in the "Watch out not to get caught at the top of the frensy" arena.
AND with all this notwithstanding; You have an executive team siphoning off hundreds of millions of dollars thru the NEVER ENDING granting of options game. NFLX buys high in the market, sells low to management per option agreements and then the big guys sell high in the market place. The shareholders are putting on a continuous expensive party for the very few chosen ones. And all the shares that were BOUGHT BACK, guess what, They're right back on the market to be bought again for the chosen few.
I had a BB online account a few months ago. Netflix had more movies and the bonus of free streaming; so I made the switch. Unless things have changes; BB has streaming but you have to pay for them all.
A drawback about netflix is that the sight is periodically down. Today for instance, I'm having trouble with the site. Similar thing happened not too long ago.