NETFLIX WILL DROP $10 TO $15 POINTS TOMORROW, DIDN'T EVEN MAKE 2.5 MILLION SHARE TRADED.....
Netflix's fundamentals don't look good, and investors should stay away, Michael Pachter of Wedbush Securities said Wednesday on CNBC.
"This is a worse company today than it was a couple of years ago," he said. "They have destroyed their DVD business, which is the source of three-quarters of their operating profit. They are chasing windmills overseas, and the content owners are never going to let them make money there."
On "Fast Money," he said that Netflix "did something very clever in the fourth quarter" by cutting spending.
"That lower spending was lower tech spending, lower marketing spending," Pachter said. "I don't get how investors think that one-time tweaking of their spending is worth $5 billion. Nothing changed. I mean, all they did was become profitable. People thought they were going to lose a little bit of money, like $10 million. They made $13 (million). Who cares? I don't get it."