Or, the gas station could invest in their own oil patch! Except instead of oil, we are talking about entertainment and specific content with no inherent consistent demand. It's awfully risky.
Cover if you are a daily short/put holder.
Sold my Sept 105 Puts for a 100% gain, went long the Sept 120 Calls. Already up 20%. Have to play both ways, Sybs.
Hope we get a rebound sooner rather than later. ITM $46.50's. Thinking that all bad news is priced in here.
I'm holding a core position bought at $48 (ouch!). Instead of averaging down with a large purchase I nibbled on some $36 ITM calls to wet my whistle. Short term target by September is $42.
If you think cable companies are going to sit back and allow Netflix to go over the top of their infrastructure to cannibalize their content plays you are dead wrong. Those companies will start charging NLFX and their customers more and more for the data usage.
This is mitigated by peering somewhat, but the cable operators and telecoms own the last mile and they won't watch as someone gets rich on their back. This means that the profit on each customer will continue to be low.
People misunderstand the telecom infrastructure that this service takes. The growth potential is limited to hi-speed internet.
Look at the market cap, not the P/E. You can adjust the P/E with a 1:7 stock split. Multiples of revenue or EBITDA would be a better metric. That's why I am ok with AMZN's price, but this is whack.
And it's OK to like the service and not the stock!
At 8.99/month. That's kind of funny.
Initiated a small put position one day early it appears. Not too much blood yet, and a lot will happen between now and the end of September.
I have some September 105's that I bought when this hit $118 and stalled that haven't moved much on the stretch to $121.
Basically my position is based on profit taking and overall market sentiment risk only.
It will have to stream to all of the people of the world, all of them, and make a profit of .75/person to justify this valuation.
Long some 115 AUG puts at the moment, but will switch when we have a dip at volume to 109 or below. Fund managers who hold this will have to dump a little to reallocate their portfolios according to their charters.