this strategy will work. it needs time. they gave the test away in order to create market awareness. the market has spoken. people want the test. they are now discontinuing the free rides and placing the onus on insurers to meet the demands of their customers. will take some patience, but i believe the strategy will play out positively for sqnm and its stakeholders over the next couple of quarters.
Even Yahoo is getting in the game. Along with others, they're after ROKU and HULU. Competition is just too strong. Some will say that this justifies the strength in streaming video trends and, thus, makes Netflix an even more attractive acquisition. That does not apply in all situations, and this is not one of them. Also see point above.
Many longs are hoping for a buyout. Can you imagine the ridicule that any buyer would face from its board and shareholders? What has fundamentally changed in their operating model that would justify a buyout at $225+ when the stock was at $50 a year ago? Any acquisition would come at a 500% premium to the price management could have paid a year ago had they been more agile. I would NOT want to be on the board or management team of a company that acquires Netflix. That's just asking to have your legacy ruined.
On the topic of content. Amazon, Google, Apple have diverse lines of business that create cash flow that can fund new content development. Netflix does not.
On the topic of hardware. Amazon, Google, Apple have access to their own large teams of engineers who understand, intimately, how content interacts with hardware and software. Netflix may also but likely to a lesser extent.
Amazon, Google, Apple and others own their own hardware in addition to having access to or developing new content. Netflix does not.
I'm about 24 hours away from removing Yahoo from my computer completely and switching to another Financial portal. This is ridiculous. I typed a fairly long critique of NFLX, twice, and had it removed both times.
And new subscribers who signed up for a free month only to watch Arrested Development can cancel their subscription. Worst business decision ever. Maybe the CEO would make different decisions if he actually owned NFLX stock.
You are a complete idiot. Keep selling, if you even own anything, which I doubt, because if you bought any INVN to begin with, you would understand why the rest of us remain long. Go away.
Amen. Just stay the course. SG&A costs are flattening. COGS will decline as you allude to. More awareness among potential customer base. Excellent potential for positive judicial decisions. Excellent potential for better reimbursement. Move to internal billing and transition to accrual accounting underway etc. etc. I have my long stake, will hold, and remain patient. If something drops this into the low 3's I'll accumulate a load of long-dated call options. Otherwise, stay the course and let the bloggers express their angst. They're irrelevant.
Price target is $115. That's an enormous delta with current market prices. Merrill Lynch is bullish on LNKD, CRM, and EQIX so an underperform rating on NFLX with a $115 price objective is alarming.
Go look at what the big money did to YOKU, a Chinese streaming service. They drove it up, ruined any retail shorts, then drove it down. Incidentally, there's no way the US based streaming content providers will compete profitably with competitors like BIDU in China. For that matter, this whole idea that NFLX can successfully expand internationally without taking on major content selection risk and without driving up their expenses in Legal, Marketing, Finance/Tax, HR functions is overextended. Those are very real costs. Expanding personnel in foreign jurisdictions is complicated and costly. Having the right personnel making the right content choices at the right price in the various south american, european, and asian countries is complicated. Don't forget that the French love Jerry Lewis...