$57.85
-1.37 (-2.31%)
Netflix, Inc. (NFLX)
CAPS Rating:
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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I'm still "Netflixing" both movies and this stock. . . look at the P/E, and think how new this biz is. Netflix is clearly a Rule Breaker, and while in the short term, Blockbuster may create price and profit margin competition, in the long run, Netflix will clobber Blockbuster, and for two reasons:
1. Netflix has over 60,000 titles; Blockbuster has around 1,000 (the stores have, well, less than that, so it would seem). Where are you more likely to find the movie you want?
2. Blockbuster still has to pay bills on its physical locations--a cost that Netflix simply doesn't have. So while Blockbuster is dividing retained earnings between the mail-order and physical location sides of business, Netflix can pour money into its breathtakingly fast delivery system (we get our new titles the day after we get our old ones into the mail--or at most 2 days) and take on video-on-demand while they're at it.
Netflix is making the right moves to carve out a bigger and bigger niche for itself. At this price it's pretty nice.