What happened to the rumors? I am short so am hoping for some sort of correction. My thinking they is are going to need some money soon to pay for these agreements?? Thoughts? I know you people are going to slam me but I am a big boy so I can take it!
They printed more stock last quarter for private placement than ever before.
$39m for favored (pumping) institutions. That compares to $4m all of last year.
Who knows what kind of discount they get?
Look in "cash from financing activities" in last report.
Consider that with their $11.6m tax benefit from stock based compensation, and voila, you have a $2m profit while burning $41m in cash! Fun with accounting!
They had $1B cash/short term inv end of 1Q.
How fast that comes down based on new content becoming available to stream is the question.
Otherwise, those content obligations remain off balance sheet, and the available content remains #$%$, but cheap.
They said they would issue debt to pay for original content since they can't afford that with current cash.
They need all their cash to pay operating expenses, trying to minimize cash burn to $50m or so a month, hoping subs continue to beat estimates.
Well if you look at their outstanding shares you will see it now stands at 63 million up from 55 last year. Of course you can't do this at Yahoo , you have to go thru NFLXs last quarter results. They have diluted shareholders via their option plan (those only generate like $12/share for the company) and converting debt. There is still a secondary to come as they are bleeding cash via these content deals, but they have manged to delay it by sneaking this by shareholders who can't actually read a balance sheet.
Wall Street depends on people having short memories and no power to affect what they are doing. No one can convince me that the money going into NFLX is from long-term funds. It seems to all be hot money that is trying to squeeze this market fraud higher. All the money the Fed is pumping into the markets has to go somewhere and while NFLX market cap is tiny compared to the amount of money being pumped by Bernanke it is getting its share.
The price has nothing to do with fundamentals. It has everything to do with lots of free money needing some place to go. Eventually they will stop or the dollar will implode because of hyperinflation. In the meantime and until all of the free money for the banks dries up the market can only go one direction ... UP, UP, UP!
You are big boy? I dont think so. BECAUSE YOU CLEARLY can not read technical indicators :
MONEY FLOW (real investing money) is really pouring on this Stock so nicely (the curv is up).
FYI , 2-3 Years ago, NFLX was really pumped , Now things have changed , at least by the perception of true deep pocket investors and HF.