Or here's cleaned up transcript excerpts: “I have a sell on NFLX…It's deja vu all over again. People thought it was going to go to infinity and beyond a couple of years ago. I was on this show when the stock top ticked at $304 and I had an $80 price target. My target is now $55. This is a worse company today than it was a couple of years ago. They destroyed their DVD business, a source of three-quarters of their profit. They are chasing windmills overseas and the content owners are never going to let them make money over there. Their growth in the US has been very good. But I think investors substantially overstate how profitable that business is. Their valued like they're going to make $30 per domestic sub and they make about $2.50. So, they have a long way to go before you can justify this valuation. I don't see it going higher.
“Netflix did something very clever in the fourth quarter. They generated $950 million in revenue and spent $937 million. So, $13 million took the market cap up $5 billion. That lower spending was lower tech spending, lower marketing spending. I don't get how investors believe that one-time tweaking of their spending is worth $5 billion. Nothing changed. I mean, all they did is become profitable. People thought they were going to lose a little bit of money, like 10 million bucks. They made 13. Who cares? I don't get it.”
He didn't see it going higher when it was $53. There comes a time when an analyst has been so consistently wrong and led investors so harmfully astray. that we must disregard any opinion they have regarding this stock or any stock for that matter.
Pachter should apologize to everyone who sold their Netflix in the 50s and 60s because of his advice and an extra-large apology for those who were spurred on to short.