$57.99
-1.01 (-1.71%)
Netflix, Inc. (NFLX)
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The Company is a online movie rental subscriber which provides more than 6,300,000 subscribers access to a comprehensive library of more than 70,000 movie, television and other filmed entertainment titles on DVD.
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With what feels like most rental video stores going outta business and stricter crimes on piracy I have no doubt that Netflix will only continue to rise. As far as re-inventing themselves, I have personally always noticed something new every time I get onto the Netflix site.
No way. NFLX is overvalued. Last quarter their CEO even cited Redbox as their biggest threat since approximately 33% of their revenue comes from new releases. It's not a growth stock. I can't see it outperforming the S&P 500.
wait, what's your point about Redbox? i don't see how that is bad. I also don't see why you don't think its not a growth stock. I think the reason people like NFLX has nothing much to do with numbers, but rather the fact that there are very smart people running this company, and that they're customers are very loyal. I think if you put those two together, that's what really makes a "growth stock" which to be honest i don't think is a really good term because there are so many stocks you could put in that category, some of which will actually grow, and some of which won't.
When I see a line in front of a Redbox Machine I get the heebiejeebies. But I've spoken to numerous Netflix customers and only a couple said they might check out "the box". A portion of my retirement says NFLX will continue to do well. I remember when Apple was going to make IBM based PC's obsolete... and vise-vera.
Obviously there is enough pie for everyone. Life is about choices, most Netflix customers have had a good experience and have told their friends, neighbors, and relatives of so.
I haven't figured a way around "the box's" immediate gratification factor. Blockbuster stores should all be turned into Re-Sale shops (that do quite well lately) my neighbor across the street owns one.
Samstevens,
ThinAyr's point about redbox was that NFLX makes 33% of its revenue from new releases. They will probably lose money to the red box's $1.49 rental for new releases, since people can just rent one on a whim instead of waiting for the mail.
I really like NFLX the service (mine is cancelled right now though, since we moved we just got cable and called it good for now. But if we ever wanted rentals it would be NFLX becuase we are definitely not paying $5 at blockbuster when you get unlimited rentals for $9.99 via netflix)
I think that NFLX is over valued though. It is really just a feeling but it has shot up since the recession. The biggest reason I heard is "these guys do well in recessions since people will rent and stay home instead of doing other more expensive things". But if these guys are priced for continued growth (I think that they are at this point) then why would you expect them to do just as well coming out of a recession?