PATCHER IS A VERY GOOD ANALYST AND GET IT RIGHT MOST OF THE TIMES. THIS CALL IS AN EASY ONE FOR HIM...
NETFLIX IS WAY OVERVALUED: TOMORROW EXPECT A BIG DROP.
Pachter. They have
destroyed their DVD business, they are chasing windmills overseas, where content
owners are going to fight them. They are trading like they are worth $30 per domestic sub, when in fact they make just $2.50 today.
Pachter was asked about the initiation of coverage of Netflix by RBC
Capital Mark Mahaney on Monday, with an Outperform
rating and a $210 price target. Mark is an incorrigible optimist said Pachter, continuing,
Netflix did something very clever in Q4. They made $950 million in revenue, and they spent
$937 million, so they produced $13 million in profit that took the stock up $5
billion in market cap. Was $13 million really worth $5 billion in stock value?
They were expected to lose tons of money, they produced a small profit. Who