with TESLA, i think this is the most expensive share at the moment
netflix makes revenue of $8 to $12 per subscriber from its plans. mostly it is loss making. It roughly has 29mil subscribers, not all of which are active or paying.
At a market cap of $19bn today, it is valued at $650 of profit per subscriber. theres no way its going to increase its subscriber base enough to bring that down to healthy valuation levels. So it'll have to get more out of each subscriber, and theres no way it will charge $50 a month without subscribers leaving.
how on earth did this get up to $19bn? just an internet streaming media stock? Technology can change longterm leaving these guys in the dust.
Huh, 19bn is nothing... Lately one "analyst" said it's going to be worth 75 bln in 5 years and the stock jumped 20 bucks just on that news... Probably his analysis included China changing their language to English...