Why would anyone buy this company, all they have to do is bid for the Starz contract for 400M and outbid Netflix? What IP do they have? Just a fickle customer base and you got a sense that they are realizing its 1) fickle, and 2) saturated by their comments yesterday.
Wait until 3Q earnings, what if 190K additions turns out a net negative?
$120 at the most. Probably more like $85. Why would any of them pay what the retailers are paying now? There are no real barriers to this business. Any one of them could squeeze out NFLX if they really wanted to spend the money to do so. It would be a lot less than buying NFLX shares for even $85/sh.
well said, same reason groupon should have taken the google offer at $7/8B, other than the internal preference analytic software (which is great and all but not worth that much) what makes NFLX position in this industry so strong? Network effects to an extent but apple/amazon have plenty of users/members that can easily be scaled up/used to negotiate prices. Those that get too greedy will be licking their wounds in 2012. I kick myself for not buying in the $30s but think this price range is over bought and based on too much hype vice real value / sustainable growth. Market/WS really is in love with these tech corps but many (like lkdn) are based off high PEs and hopes and dreams. Good luck to you all.