Now there is an interesting statistic for all (longs and shorts)...At $8 per subscriber/month...
Well you do the final calculation and ask yourself the following question as you complete the math...Even if they were to DOUBLE their subscriber base (assuming 50 million subscribers) is the market cap from their revenue stream worth $250 per subscriber at $8 per month in fees per subscriber??? Double it still again to 100 million subscribers and that's $125 per subscriber or 1.5 years of revenue per subscriber=NetFlix market cap...OH, none of that includes the cost of content, operations, marketing, expansion, etc...all of which will skyrocket (per Hastings himself) to generate that expansion. INSANE !!!
Add to this: new Starz deal will be at 300-350M/year, from current 30M/year. This year estimated EPS for NFLX are $4/share or about 240M. Now do the math - just one single Starz deal will push NFLX into red.
Everyone with a brain can clearly see that NFLX is extremely overvalued...By any metric even with fantasy growth ideas of international and mobile use throw in. Everyone needs to stop talking about how can everyone not see how overvalued NFLX and start talking about 20-30% short float..and when the manipulation by probably a few bots/hedge funds will take this down along with probably another 20 tickets just as overvalued they have decided to take up to the sku..>AZO with negative book value is just one to name...CMG, PCLN, OPEN also come to mind....The question you should be asking yourselves is how high will they take it up before bringing it down to 40 a share or lower..is it 500? will they pump it to 800? Be careful shorting..do not overextend yourselves...and be prepared to possibly wait a few years for the valuation to eventually touch base with reality...I forsee them taking down all of these at once...
Alot of what??? SCAM SCUM maybe?
I can NOT believe that everyone involved with this stock can't at least digest the implication of a $500 per subscriber market capitalization from a run rate of $8 per month or $96 per year. And that assumes all are paying customers and makes absolutely no allowance for the expense and investment side.
Truly beyond my comprehension!!!
And I will keep bumping your message to the top because this is insane. Why does the entire nation have to suffer at the hands of WS and DC thugs? I respect the Italian Mob more than I do our own government!
One does NOT need an MBA or even a college degree to realize that $500 per subscriber market cap on $8 per month (let's say $100 per year) makes ABSOLUTELY NO SENSE. Only logical conclusion is GROSS MANIPULATION!!!