Browsing articles tagged with " Netflix"
Netflix CEO Reed Hasting is so confident in his company, his stock, that he's buying up shares of Facebook, not Netflix. If I was a Netlix shareholder, I wouldn't be happy about this.
In fact, Hastings not buying a small chunk of shares, no, he's buying a boat load of Facebook shares, as in he's buying $1 million worth of Facebook shares that is, 47,846 Facebook shares at a weighted average price of $21.03 each according to the WSJ
. Facebook's share price has been cut in half since their IPO, so I guess Hasting thinks their cheap. Or
CNBC's Hank Greenberg rolled out his 2012 predictions
and his last one was quite a doozy: Facebook will buy Netflix. Why? Well one reason he gives is Netflix CEO Reed Hastings sits on Facebook's board of directors. It's not out of the realm of possibilities, but surely a reach.
Even though Netflix's market capitalization is $3.53 billion as I write this, it seems far fetched the more you think about it. Although with Facebook set IPO in the next six months, they would have the money for acquisitions. In the end though, this seems more like a pray,
Yeah, like when a fly or a mosquito keeps hovering around and just won't go a way.
In what is the understatement of the day or month or even year, Whitney Tilson says he thinks Netflix made the right move to raise capital but finds it "irritating" that they're issuing stock at 1/3 the price to which they were buying it just a few months ago.
When he says irritating I'm sure he means incensed, angry, frustrated, and cartoon like Yosemite Sam mad - where fire comes shooting out of your ears you're so mad. This is a stock
You have to give the man some credit: he doesn't shy away from his mistakes and he isn't afraid to reverse course when he thinks the valuations change in a stock. Whitney Tilson went on CNBC's Fast Money Halftime report to discuss why he is now going long shares of Netflix, which he once famously shorted.
"Today, we see a company with $4 billion market cap, down from $16 billion about 3 months ago. And on number of metrics we think that’s very cheap,” he says.
Honestly, Whitney, you're my friend, right? I know, I know, I know I was wrong to tell you NOT to short our stock a few months ago, but now I want to come clean and not let you lose money going long our stock this time. Yeah, it's getting a bit confusing isn't it. But Whitney, you are a wonderful human being and I want to save you from more pain with our stock.
It's just that, we are freaking out over here at Netflix. Sure, the Qwikster fiasco and raising prices have put us in a bind, but things weren't
Whitney Tilson, the man wisely went short Netflix and then very unwisely took off his short trade is now going long the stock:
“It’s been frustrating to see our original investment thesis validated, yet not profit from it. It certainly highlights the importance of getting the timing right and maintaining your conviction even when the market moves against you. The core of our short thesis was always Netflix’s high valuation. In light of the stock’s collapse, we now think it’s cheap and today established a small long position. We hope it gets cheaper so we can add
Don't get me wrong, I love Jim Cramer, his mad passion for stocks is contagious. And his book, 'Confessions of a Street Addict,' is superb and inspiring. However, you've got to be very careful when listening to his mad stock calls.
In a way he's forced to make calls, as he's on TV so much and that's what he's paid to do. Yes, he's bound to be wrong since he's making picks every single day, but sometimes his caffeinated exuberance gets the better of him. Here's his call to buy shares of Netflix at $135, which is proving to be
If you bought shares of Netflix in the $200 range you're hurting right now. The stock has been getting hammered ever since Netflix CEO Reed Hastings decided to more or less end the DVDs-by-mail option, as he moved it to a separate service, which essentially doubled the price if you wanted both mail and instant streaming together.
In the long run Mr. Hasting is right, movies will all be delivered on demand and instantly, but right now it looks like Netflix is losing tons of customers and the market isn't too happy either, as the stock is tanking day after
Marc Randolph was one of the founders of Netflix along with Reed Hastings and he weighs in on the big change Netflix made recently to focus more on streaming movies online instead of renting DVDs through the mail. Randolph said the move was all about relentless focus by the 'best entrepreneur on the planet'.
When Randolph was CEO the big switch Netflix made was from both selling DVDs and renting them to just renting DVDs. And they were concerned about making that big switch since they made bucket loads of money selling DVDs.
With Netflix shares failing off a cliff, going
Netflix is a stock that's at once loved and hated, the ultimate growth stock and the ultimate short. Famously, the Netflix CEO, Reed Hastings, even went so far as to tell a trader shorting the NFLX
, Whitney Tilson, to get out while he could, as the stock is only going to go up.
Now, what with Netflix going global with streaming, you can see why. The question is, what other company can step in and stop Netflix from cornering the market on direct to TV streaming and movie delivery? There doesn't seem to be one.