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Netflix, Inc. Message Board

  • prudent.investor prudent.investor Feb 3, 2013 1:41 AM Flag

    Silly longs need to take off rosy eyeglasses to see clearly - Netflix is dying!

    Silly longs need to take off rosy eyeglasses to see clearly. NFLX was a game changer when they came out with the DVD mailing model that killed storefront Blockbuster. But now, Netflix is the obsolete one with the dying DVD mailing business while the new streaming business is extremely expensive to build. Netflix is getting killed by other competitors with deeper pockets this time.

    If Netflix is really doing well, it would have reported high growth of sales and profits, but it has none. Longs need to take the rose eyeglasses off to see clearly. Do not listen to the B.S. from the management. Check out the real numbers. Netflix reported pathetic 8% year-over-year sales growth after spent hundreds of millions of dollars and committed itself to billions of dollars of obligations. There is no growth here. AAPL grew 18% on sales and big bully competitor AMZN grew 21% sales for the same quarter. Do not buy into the BS dreams from the management. AAPL CEO may not know how to BS like NFLX CEO, but the actual performance of AAPL is clearly better. NFLX is not even close to the growth rates of AAPL or AMZN.

    Not to mention NFLX profit dropped 80% from last year. It is hopeless. NFLX business is dying fast.

    This space will eventually be owned by big players like Amazon and ISPs. Those big players can afford to lose money in streaming business to kill Netflix and grab market shares because they have other venues to make money, but one trick pony Netflix cannot do the same. Netflix already piled up billions of dollars of obligations that is coming due. Netflix is on the brink of going bankrupt already.

    The competitions is so fierce that Netflix completely does not have any pricing power at all. Netflix is resorting to giving contents away for free. It is hopeless. That is why its earnings dropped 80%.

    NFLX is just a dying company with an outdated business that is quickly running out of cash and piling up debts. If you want real growth, not just BS, you have to sell NFLX and buy AAPL or AMZN.

    Sentiment: Strong Sell

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    • Silly longs need to take off rosy eyeglasses to see clearly. Do not be fooled by the management BS and the useless sub growth numbers. The increase in sub did NOT translate into increase in sales or profits at all. The sales only grew pathetic 8% and earnings per share dropped 80%. Why? It is simple. People are taking advantage of one month free for watching movies during holiday season for free, and they will be cancelling in Q1. Exactly what happened last year when NFLX had a good Q4 followed by a loss in Q1. Use your own brain. Do not buy into to any hype.

      If you want real growth sell this extremely expensive debt loaded bubble NFLX while the prices are still good and buy real growth stocks like AAPL (18% sales growth) and AMZN (21% sales growth).

      NFLX is just a broken bubble stock that is leaking air. You need to get out of this broken bubble before it breaks down below $160 which can cause all the automatic selling to kick in.

      Sentiment: Strong Sell

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