so, is the thought process that if you guys make us mad enough, we will short some more? Actually what happens is I leave the computer wanting to kick someone and end up ignoring you and most of the other longs. What a sorry excuse for a human being you are. Good luck to you. Since you have such a rotten personality, you will need a lot of money to get through life.. What divorce are you on?
Any Wall street investor knows that price increases that big it not good for the stock. Stocks move up on earnings and if a lot of people drop lets say more than 20 percent of the subscribers not even the price increases will save them.
Also people have the option of choosing to stream only so those who remain might not buy the other half. Which will mean guess what? Reduced earnings, and what does reduced earnings mean for a stock? You got it, down the crapper.
Wall street loves pricing power (the ability to pass rising cost on to consumers). With increasing unemployment and increasing content costs it's a gamble. There are fewer and fewer who thinks it's worth the risk for the last $30 upside with potential $100+ downside.... except Cramer who is playing it with calls to limit the downside loss potential.
Three words: August Put Spreads
It's fine when you can pass the cost on to consumers but considering unemployment is 16.9%, we're in a depression and our administration has absolutely no clue what do except do more of what they've been doing and making things worse.
Consumer spending is in trouble even this past week the cheap dollar stores admitted to their business' slowing down.
Also small business polled replied that 65% of them have no plans to hire in the following year, can you say depression???
If there weren't welfare checks, unemployment checks, record food stamp use, and various other entitlements you would see soup lines and houses of worship struggling to feed their community in need.
We/this country are in huge trouble people, act accordingly, protect your family, loved ones and your finances.
The worst is yet to come.
We need a reset, don't raise the debt ceiling, close the Govt. down, we'll be fine, just take look at Minn.
Have a great night.
You really think that a 50% loss of customer base is realistic? I think that a major loss of customer base would be 10-20% realistically. Now do the math:
10 customers: $100
8-9 customers: $128-$144
Hell if they took a huge hit and lost 30-40%:
10 customers: $100
6-7 customers: $96-$112
Picking unrealistic numbers to prove a mathematical point is, well, pointless. It is extremely unlikely that the company will sustain a 50% reduction in customer base unless another company aggressively seeks their sector or customer base. The closest you have is Redbox.
Lets say they have 10 customers, paying $10 each per month = $100.
Like you said 50% or 5 of them leave, so they will have 5 customers that pay $16 each = $80.
What a dope! If most of the longs are as clueless as you are, this will drop so hard it will be memorable.
p.s.: The 5 of them that stay, will choose either the DVD or streaming, so it will be $8 each = $40, they lose 60% revenue !!
All the hype behind this company has been about subscriber growth.
With a 60% price increase it will be a wait and see what happens with old subs and how many new subs come on board.
The outrage has gone viral all over the internet which suggests to me the subscriber numbers may well go into a tailspin.