The stock, trading at $300 bucks today, has factored in the next SIX YEARS of astronomical growth.
In order for $300/share price to be justified, NFLX needs to reach 125 MILLION subscribers by 2017.
This assumes also that the margins will remain relatively stable, competition will no be substantial, and that the bandwidth issues suddenly go away.
THIS IS ABSURD - who in the right mind will pay this price with the next 6 years of ASTROMICAL GROWTH coupled with PERFECTION already priced in????
About 4 months ago, Facebook said they would be offering a few movies on their site and this thing tanked 25% in about a week.
Longs, you've done quite well, but this stock has to be 1 of the most overhyped ridiculous stocks in the market right now. The only thing I can compare this to is Salesforce.com - which is equally absurd.
From early July - noone believed this and MANY longs wish they had taken profits. I personally know a guy that bought in at $50 (only 200 shares) but he cried for 2 weeks when it started falling below $200.
I agree with you. I can't believe this thing is heading to $300. Google and Apple don't even have this valuation. I have a feeling in a few weeks when earnings is nearing this stock is headed south. No one in there right mind would acquire this company at the current price.