Of course your right, but the problem is that it could take years (or just days) to play out in this environment of easy money to support these Ponzi schemes. We just don't know. There is usually no prior indicator of when it happens, because one morning you wake up and a large shareholder decides to take its profit and then it collapses by 90% over just a couple of months as everyone runs for the exit, with no bottom support of profits or cash flow..
Wow - I have heard every reason in the book to upgrade AMZN .. but valuation??? that is a first ... stock is up 65% this year, and now Evercore feels it is undervalued .. good timing on the advice idiot.
Unlike other high fliers, they are in great financial shape and growing fast with awesome cash flow ... this is the type of company you want to hold when the dust settles. It will bounce back, as fundamentals are on its side for the long haul.
NO interest in the 9th largest company in the S&P500? One fund gets out, and look out below - zero liquidity.
Boy are you wrong. NFLX will go the way of AOL .. initial pioneer who gets lapped by better technology. No one discusses this, but AAPL will be the one to crush NFLX. NFLX is a simple distribution model with not enough capital to drive significant enough content - or Live TV. AAPL will have a major announcement surrounding Apple TV which will truly drive cord cutting as it partners with content providers to stream live TV combined with "on-demand" in a simple and elegant concept.
Yes - down to 30c for all of 2016 .. they have been lowered so far, that it will be impossible to miss. 18 month forward P/E of 380 now.
$9B in net capital invested, $9B in debt invested ... $1.9B in retained earnings over 20 years. A whopping 0.5% ROIC
AMZN has $8.3B in debt. Current ratio is a dangerous 1.1 with downside coming, as Q2 and Q3 are always a cash flow drain.
Here is what he said today on CNBC:
Mahaney was asked what he thinks of Devitt's bullish case scenario of Netflix touching $1,600 by 2020. He replied, "Look, I have been bull on Netflix since $60, also from $130 going down to $60. So, we didn't necessarily call to bottom. I think it's a great, a fundamental story. I don't think you want to be aggressively buying Netflix here. It is one of our buys, it was one of our top buys at the beginning of the year."
"As the stock has almost doubled year-to-date, I think you want to cool down the [...] a little bit here. You also want to see, come on now let's show some execution in the international markets. Let's see if they can have any success in Japan, any success in China before we start throwing around $1,600 price targets," Mahaney concluded.
lets see if the bargain hunters move in
These guys need to issue a PR that they are taking some of that pile of cash to buy back stock. This thing would pop 10% as it would show they are serious about protecting shareholders and would scare shorts out.
good luck, that bag your holding is heavy!
Butch - don't be naïve .. they increase the float by 30x and only did a 7-for-1 split. They did that b/c a secondary if coming - they are out of cash and already loaded up on debt. This is the biggest pump and dump of all time. Why do think all of the upgrades came just after the BOD meeting? It is b/c wall street banks got frothy in the mouth thinking about the money they will make on the secondary. They all got in line with their hands out, and now NFLX will reward those most loyal.