What a shock with triple witching tomorrow and 11,500 $95 call options at stake (and 9,500 $95 put options) [that's 20M shares of premium] that NFLX has bounced off $94 all week with the markets way down, and it miraculously ends up at Max pain of $95 this afternoon.
Should have the opposite affect, as there are only a few buyers with enough capital to pull off buying NFLX, and one of them (MSFT) is now out of the picture after spending all of that money on LNKD. Should be negative for them.
#1 - their cash is overseas, so they cannot use it w/o a massive tax event.
#2: they could use debt, but that is still dilution dummy. Do you think investors don't value the cash in the stock price? There would be zero synergy in this deal to make up for the 300x P/E of Netflix vs. the 12 P/E of apple.
Good luck counting on that. It is not going to happen - name the last large acquisition apple did. The dilution will crush apple stock, and it won't even help their growth much if at all.
That will never happen. AAPL can reproduce NFLX in a couple of months (just like AMZN did) on the cheap - why would they pay $50B for something they can create for less than $1B.
This pig is now within $7 of where she closed prior to that disaster of quarter .. how quickly everyone forgets what a mess this company is in financially.
$102.04 is the Fib retracement resistance prior to the 200dma ($104.58). We see if she bounces off of the 102.04, otherwise you could be right and 104 is in play prior to the weekend.
yeah - because the Chinese will never pirate movies, right?
The Chinese will never pay for Netflix - good luck with that dream.
How do you explain the 65% move since an absolutely terrible Q on every front? It is because it is even more clear now then ever they need capital, and they need it bad very fast. I am not saying they are not a good company, not even saying they might not be a giant. But they are already trading at 7.5x sales, 27x book, and 175x 2016 PE and facing massive share dilution shortly. This thing is priced to perfection for sales 5 years now that may not materialize. Only upside is to hope the over exuberance continues. And that is why I don't short it - because that over exuberance could continue.
You cannot short growth stocks with negative cash flow and a horrible balance sheet. These are the stocks that are controlled by the banks because they need debt and add-on offerings - the most lucrative business for banks. The stocks are propped up by sell-side analysts and trading desk support such that they look healthy at debt time. This is exacerbated by shorts, as they are easy prey to sell low and force to buy back high.