Technically, NFLX breakout $120s, falling back in lower volume.These two week's pull back will pave the way for NFLX to move up to $150 range in 2 weeks or so. After that, with overall market most likely pulls back, NFLX may or may not fall to $130/$140 range.
As to competition,any industry has comptition. The key is who is leader.It is NFLX that brings movie to home via internet.
It is odd that one article has such different reactions from people. My opinion is that NFLX is a great company built on a innovative concept. It has out lasted the competition by staying ahead of the curve. However with increased competition it is going to be difficult to continue to grow at such a rapid pace. Remember rimm, goog, and msft. I do not know when or at what price but growth will slow and the stock will come back to reality. This is just my opinion and not a recommendation to buy or sell NFLX.
Good read. That is the reason for the increased competition in this industry. I assume you posted the article to assure longs that they are holding a good stock or should buy NFLX. I don't think the article brought to light anything that most people were already aware of. I would think that is one reason NFLX has increased membership over the past two years. However, NFLX was able to do this during a period that the brick and mortor brands were closing shops. People didn't have as many options to rent movies. NFLX was in the right place at the right time. With all of the competition entering the fray of business it is become increasingly expensive for NFLX to attract and/or retain membership. Therefore, profits decline. They are already trady at an insanely high valuation and the stock can only go down. What you have to think of is what would cause NFLX to increase? If you have overwhelming reasons and convictions you should hold or buy the stock. I think most people, except those in denial or don't know why they own the stock to begin with, think that the increased competition, expensive Epix deal and now pending litigation over patented technology will squeeze the margings and cause NFLX to be less profitable going forward. These reasons seem much more compelling than the stock going up IMO at least. Good luck.
Right. NFLX is just a me-too company. The barrier of entry is so low. GOOG is using his you-tube to enter the fray. NFLX's profit will be hurt by the intense competition. No one is denying NFLX is still the leader, but its valuation is outlandish.