The Bankruptcy of NFLX (Netflix)
- Thread starter chaosclarity
- Start date
Yep, the price action was not very impressive given the news driven opening gap. The OTM calls aren't looking all that stellar either.
NFLX chart.
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3312248 \img>
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3312248 \img>
i dont think nflx will go bankrupt anytime soon .
Here, I found this for you:
http://seekingalpha.com/article/268...e-company-s-accounting-just-smoke-and-mirrors
In the comments section, somebody linked ET as evidence:
http://www.elitetrader.com/vb/attachment.php?postid=2899309
GordonTheGekko
Guest
1.) I don't understand why Netflix spun off it's DVD segment. Why not move to streaming and keep it under one brand? It makes no sense... rebranding their DVDs is not going to isolate their destruction. If anything, it makes that company unrealistic since it's built to fail (Quikter), and even comes off as a Leo A at HP
2.) It seems a little fantastic that $8/mo gets unlimited access to movies... unless if NFLX is betting that most users won't use that much money worth of publishing rights. It seems as though that at this point NFLX is playing off of them being number one, and they've worked some kind of deal with publishing houses that this is the best way for them to get revenue, versus brick and mortar, and will even discourage torrents.
3.) Is Quikster no longer part of the NFLX ticker on the exchange? If it still is, why the heck is the stock tanking? Sounds like some rebranding that they're doing for either good reasons that could be of many, or because the CEO (forgot his name) is being stupid and phobic of Boarders/Blockbuster/Kodak/etc.
Thoughts?
2.) It seems a little fantastic that $8/mo gets unlimited access to movies... unless if NFLX is betting that most users won't use that much money worth of publishing rights. It seems as though that at this point NFLX is playing off of them being number one, and they've worked some kind of deal with publishing houses that this is the best way for them to get revenue, versus brick and mortar, and will even discourage torrents.
3.) Is Quikster no longer part of the NFLX ticker on the exchange? If it still is, why the heck is the stock tanking? Sounds like some rebranding that they're doing for either good reasons that could be of many, or because the CEO (forgot his name) is being stupid and phobic of Boarders/Blockbuster/Kodak/etc.
Thoughts?
I am no expert on this but regarding your #1 question:
---most likely for accounting purposes
---possible that the new NFLX can be viewed as a fully internet company, maybe different taxation
---I don't think the DVD rental was ever profitable with such a low fees, maybe they just did an Enron, when all the money losing part is dumped on a different company. This way they can try to keep the NFLX stock price high
---most likely for accounting purposes
---possible that the new NFLX can be viewed as a fully internet company, maybe different taxation
---I don't think the DVD rental was ever profitable with such a low fees, maybe they just did an Enron, when all the money losing part is dumped on a different company. This way they can try to keep the NFLX stock price high