That may be the case, but NFLX does not own/control the pipes (bandwidth). Also there are no barriers to entry, and NFLX has no moat. Also, did you ever hear of Amazon, Comcast, and Dish (Blockbuster), Coinstar ?.
Netflix doesn't need to control the pipes. The pipes, cable, satellite or whatever, don't care what digital bits travel through them.
The moat, as the other poster says, is the 33 million subscribers. No one will be able to significantly undercut the $7.99 monthly so it's all about content. Netflix is addressing that need with "House of Cards", the Disney contract and Dreamworks. The stock could reach the googlesphere.
Wait till you all zombie clowns in usa below 50 get slaughtered with biggest fraud street casino crash and demise of the us$ in 2014 and you all will be looking basement shelter in your oldie parents homes
you cheer fraud scam bubble mania and loot by fraud street banksters and corporate thugs like greed hastings but do not realize what damage they do to the under lying economy of a nation
rome did not burn in a day
netflix scam gang has shattered all loot records in history of this wall(now fraud) street casino
scream on bash on clowns..............
mark this day usa fraud street casino peaked and so did this scamflix
leap puts for 2014 deploy today and blow whistles to expose these criminals
Sentiment: Strong Sell
I'm also not getting it. I'm trying, especially after that $70 jump in two days. I keep thinking I should ride the momentum, but I just can't seem to get the courage to throw my hard earned money out there for that play against the backdrop of fundamentals that exist. I know it's probably going to go up today, I just can't take the bait with a clear conscience. All anyone has to offer is momentum on a stock with a p/e of 600+ even before you add back in the expenses that the company isn't claiming yet. Guess I'm old school, but those bubbles are your best friend until they're not, then it's beans & rice every night, with lots of crying. Kinda like marriage ;)
Good post cowbell...I guess I would say fundamentals schmundamentals...a person can pick any statistic and call it a fundamental. You may be from an era(as I am) when P/E was THE indicator. My fundamentals for this stock include cut the cable patrons, revenue growth and other esoteric numbers. It's a long term investment.
Maybe it's less about 'not getting it' than not seeing how the industry will become profitable. Right now NFLX is eeking bye on it's cash flow. Neither Netflix nor Amazon has shown the path to monitizing this great technology.
One thing we know absolutely: Netflix trades wildly. It is a spec stock. They don't have a bottom line supporting current stock value. Nor has Netflix revealed a forecast suggesting they will become highly profitable.
Us oldsters understand emerging technology. We use it every day.
Don't be offended by my headline lifesweetingreencountry. I too am a 60something.
You say Netflix is eking by on it's cash flow and I say Amen brother. Over 33million times $8 a month(some at $16) and a goal of 50 million subs. That's a lot of checks in the mail. Just guessing but, I'm thinking they will offer some premium pay for stream ala Amazon or maybe even some live sports streams(wow) at some point in time.