Spacey Original is HUGE news, Bigger than Upgrade from GS!
All the naysayers will say crap like, they are over paying for the content, it will impact the bottom line, they are competing with traditional distribution and gonna lose etc.etc.etc....
What the REALLY means is, they are trying to break into the traditional TV market... Look for Joint rights, with one Major Network also carrying this content. This is HUGE! We are not talking second hand re-runs here, we are talking first run content... Who else will want to BOLT ON NFLX streaming to increase viewers and ad revenue? I bet they will get in line once they figure this out....
Re: BIGGEST INSIDER ENRICH SCAM AND LOOT IN BILLIONS CONTINUE WITH PRICE/VOLUME MANIPULATION IN TRADING PIT BY NEW WEAPON HANDED BY CRIMINAL THUG REED HASTINGS TO HIS WALL(FRAUD)STREET CRIME PARTNERS
To: firstname.lastname@example.org HERE IS PROOF ON GOLDMAN SACHS PUMP/DUMP CRIME This is from a Barron's Tech Trader Daily article by Tiernan Ray on 3/8/11, titled, "Netflix Drops 5%: Goldman Sees Credible Long-Term Facebook Threat".
In the article, the second paragraph says: "Chung maintains a Neutral rating on shares of Netflix and a $200 price target."
Now, miraculously, only one week later, the same analyst ups her rating to a buy with a price target of $300??? Something stinks here and it could be coming from up the line at Goldman.
NOW TODAY SCAM FROM GOLDMAN SACHS CRIMINAL TERRORISTS March 14, 2011, 7pm ACTION Buy Netflix, Inc. (NFLX) Return Potential: 49%
Enough demand for multiple players; raising estimates - upgrade to Buy
Source of opportunity We upgrade Netflix shares to Buy from Neutral and raise our price target to $300 from $210, implying 50% upside. With shares down almost 20% in the last month and trading at a 1.0X 2012E PEG, we believe that NFLX shares overreacted to more visible signs of competition, while at the same time, sub momentum has been better than expected, Canada is near 10% penetration in 6 months, and our proprietary survey shows explosive growth for online video. As a result, we raise our 2015E paid sub estimate from 50 mn to 60 mn and our EBITDA margin from 16% to 20%. Our 2011- 2013 EPS estimates are now $4.56/$6.72/$8.72, up from $4.52/$6.21/$7.58.
Catalyst We upgrade Netflix to Buy as: (1) NFLX benefits from rapid growth of online video consumption, driven by the proliferation of connected devices - 27% of US consumers now stream TV shows/movies, up from 16% yoy according to our GS Internet Usage Survey; (2) Netflix now has sufficient scale to make it difficult for new entrants given low price points and expensive content costs; and (3) Competition to date has been underwhelming and we believe that demand for streaming online content could be large enough for multiple players. Catalysts include: (1) International broadband ISP partnerships, allowing for sooner break-even points; (2) New market and product announcements; (3) Additional streaming content deals, including the possible renewal of the Starz Encore agreement; and (4) Earnings – we expect 1Q sub growth and 2Q guidance to be strong.
Valuation We increase our 6-month DCF- and multiples-derived price target to $300, (from $210), implying 45X our 2012 EPS estimate or a 1.5X PEG.
Key risks Content availability and expense, slower digital transition, usage-based broadband pricing, difficulty entering non-US markets, competition.
INVESTMENT LIST MEMBERSHIP Americas Buy List Coverage View: Attractive
Ingrid Chung (212) 902-2360 email@example.com Goldman Sachs & Co.