This is reminiscent of those days in 1999-2000, when all a company had to do was put out a news release that they were building a web site and their stock would pop 10-20% in a day. Today, a mention of Facebook integration apparently does the same thing.
I can't stop laughing, a bunch of 16 year olds no longer have to write notes on what they are watching, but rather will have big brother put it on a news feed and the stock is worth almost a $billion more. My family has 10 FB accounts and 1 NFLX account so no new sales from us.
But I'm sure NFLX will have 8% growth again this quarter. And as far as making money, if you have to issue debt or new stock to pay your bills....you ain't making money.
Not even close..... I remember it well, companies going public at 10,20,30x Revenues... NFLX at 3x and is making money.... I clearly remember Merrill Lynch recommending stocks as value, trading at 20x Revenues because their competitors were at 40x Revenues... some even over 100x Revenues... now that was crazy.
but Crazy to me -- is Comcast at $100 B Valuation with $40 Billion in Debt -- and losing subscribers !! I will take NFLX at $10B anytime.
Any of these companies have an indeterminate amount of future obligations....or at least ones that they are being forward about admitting to? Anyone buying this stock without knowing what those will be is just crazy.