The Bankruptcy of NFLX (Netflix)

Quote from myoffices:

netflix is now going into gaming which is just as big for rentals.
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So has done Redbox. People don't like to wait for games. Redbox's price is $2.12 and if you get it in the morning, you can have it until 9 pm the next evening, basicly for 2 days. That is $1 per day for a game. I don't even think they are making money at that price.

Netflix still hasn't came out with the games, and although I was excited about it, now that Redbox has it, I don't care for the NFLX games anymore, although obviously bigger selection. The other advantage of Redbox is when the game is a stinker, you can quickly (same day) return it and get a new one, no 4-5 days waiting.

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I think the whole Netflix story has been a "too good to be true" for users. But what is good for users is usually not good for the company. I simply couldn't see how they could make money with $8 per month fees, and now that users have been spoiled, it is hard to rise the price.

Studios didn't like the service and wanted bigger and bigger cuts, ISPs didn't like the service either. Competitors think they can copy it, but again, for too cheap, I don't think they can make it profitable...

The stock dropped 70% in 4 months. I have to agree with the OP, the bankruptcy might be really close. It is a shame, but again, a company needs to be profitable not just popular...

For weekend reading:

http://seekingalpha.com/article/307535-avoid-netflix-on-cash-flow-issues
 
Quote from zdreg:

"The sale of Blockbuster to Dish despite my advice"
did they ask you for your advice?
are you always this presumptuous or only on saturdays?
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Buy the book when I announce it and maybe you too can be enlightened. Just follow my posts and maybe you will learn something. Whats new to you is old to me. Same story different time.

FULL disclosure I have had relationships with both companies in the past. This has no reflection on DISH and I am not here to toot my horn but to help you understand the investment. Unlike you we pulled the trigger much higher so Im just working with the profits how about you.

Successful investors trade with the profits while traders who suck can't make any investments since they can barely hold on to their shirts and since they lost their pants they are consistently showing their ASS.

http://seekingalpha.com/news-articl...g-agreement-in-the-united-kingdom-and-ireland

read this article that just came out. Foreign rights are different from US domestic rights. Also Blockbuster is not a big brand in these markets. This deal is HUGE.
 
Quote from myoffices:

Buy the book when I announce it and maybe you too can be enlightened. Just follow my posts and maybe you will learn something. Whats new to you is old to me. Same story different time.

FULL disclosure I have had relationships with both companies in the past. This has no reflection on DISH and I am not here to toot my horn but to help you understand the investment. Unlike you we pulled the trigger much higher so Im just working with the profits how about you.

Successful investors trade with the profits while traders who suck can't make any investments since they can barely hold on to their shirts and since they lost their pants they are consistently showing their ASS.

http://seekingalpha.com/news-articl...g-agreement-in-the-united-kingdom-and-ireland

read this article that just came out. Foreign rights are different from US domestic rights. Also Blockbuster is not a big brand in these markets. This deal is HUGE.
More...

i could not tell you where this stock or the company is going but i can tell you that when i read a comment like this i just am amazed at the level of narcissism. you should consider the fact that you are not that important nor are your opinions to either company.
 
Quote from daveyc:

i could not tell you where this stock or the company is going but i can tell you that when i read a comment like this i just am amazed at the level of narcissism. you should consider the fact that you are not that important nor are your opinions to either company.
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You are absolutely right! So when you short a stock and it goes from Z to A. Then the only thing you care about is the way it felt to deposit the profits. With that being sent : You saved me this months therapy bill.

Please read: http://psychcentral.com/blog/archives/2008/08/04/how-to-spot-a-narcissist/

At the core of extreme narcissism is egotistical preoccupation with self, personal preferences, aspirations, needs, success, and how he/she is perceived by others. Some amount of basic narcissism is healthy, of course, but this type of narcissism is better termed as responsibly taking care of oneself. It is what I would call “normal” or “healthy” narcissism.

Extreme narcissists tend to be persons who move towards eventually cutting others off and becoming emotionally isolated. There are all types of levels on that road to isolation. Narcissists come in all shapes, sizes, and degrees. I would like to address how a person becomes an extreme narcissist.

Narcissism, in lay terms, basically means that a person is totally absorbed in self. The extreme narcissist is the center of his own universe. To an extreme narcissist, people are things to be used. It usually starts with a significant emotional wound or a series of them culminating in a major trauma of separation/attachment. No matter how socially skilled an extreme narcissist is, he has a major attachment dysfunction. The extreme narcissist is frozen in childhood. He became emotionally stuck at the time of his major trauma of separation/attachment.

FYI - With Netflix just realize that once they start streaming in europe to cell phones they go from 12 million subscribers to 50 million and increase their footprint exponentially. Adobe just abandoned their mobile platform plan which means that a new standard has been chosen. So if you want to short netflix now you are all nuts from these levels. I just enjoy being right...All the time..
]:-()
 
Quote from myoffices:

You are absolutely right! So when you short a stock and it goes from Z to A. Then the only thing you care about is the way it felt to deposit the profits. With that being sent : You saved me this months therapy bill.

Please read: http://psychcentral.com/blog/archives/2008/08/04/how-to-spot-a-narcissist/

At the core of extreme narcissism is egotistical preoccupation with self, personal preferences, aspirations, needs, success, and how he/she is perceived by others. Some amount of basic narcissism is healthy, of course, but this type of narcissism is better termed as responsibly taking care of oneself. It is what I would call “normal” or “healthy” narcissism.

Extreme narcissists tend to be persons who move towards eventually cutting others off and becoming emotionally isolated. There are all types of levels on that road to isolation. Narcissists come in all shapes, sizes, and degrees. I would like to address how a person becomes an extreme narcissist.

Narcissism, in lay terms, basically means that a person is totally absorbed in self. The extreme narcissist is the center of his own universe. To an extreme narcissist, people are things to be used. It usually starts with a significant emotional wound or a series of them culminating in a major trauma of separation/attachment. No matter how socially skilled an extreme narcissist is, he has a major attachment dysfunction. The extreme narcissist is frozen in childhood. He became emotionally stuck at the time of his major trauma of separation/attachment.

FYI - With Netflix just realize that once they start streaming in europe to cell phones they go from 12 million subscribers to 50 million and increase their footprint exponentially. Adobe just abandoned their mobile platform plan which means that a new standard has been chosen. So if you want to short netflix now you are all nuts from these levels. I just enjoy being right...All the time..
]:-()
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i will send you my bill. there is more to narcissism than what you bring here in this quote including that under this mask you wear lies a fragile self esteem and you cannot handle even the slightest criticism. i don't envy you. that must suck.

and please, i understand that this is a trader forum and there are not many here to boast of their losses but only their winners, so you have a winner, big deal, nobody really cares. it is likely that you are getting back some of your huge losses on a prior trade or you will give up your gains on the next trade. consider therapy.
 
Quote from daveyc:

i will send you my bill. there is more to narcissism than what you bring here in this quote including that under this mask you wear lies a fragile self esteem and you cannot handle even the slightest criticism. i don't envy you. that must suck.

and please, i understand that this is a trader forum and there are not many here to boast of their losses but only their winners, so you have a winner, big deal, nobody really cares. it is likely that you are getting back some of your huge losses on a prior trade or you will give up your gains on the next trade. consider therapy.
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Considered. Applied and engaged. Now thats what Therapy is about; understanding the reality and accepting it. Accusation accepted...

Now what. I'm satisfied are you. (notice the question has a period at the end)- lets get back to stock trading.
 
Quote from myoffices:


FYI - With Netflix just realize that once they start streaming in europe to cell phones they go from 12 million subscribers to 50 million and increase their footprint exponentially.
More...

In your dreams. Most Europeans don't speak English, so they have to stream in their native language>>>cost. And you expect Europe to have 3 times as many subscribers as in the USA???
 
Netflix won't ever go bankrupt, but they certainly destroyed significant amounts of capital when they decided to screw their subscribers.

I like being able to pull up practically any TV series from any episode, so I like the streaming but I don't really have a priority to get my family together and agree on a movie when I could just use redbox, but sometimes or more often than not redbox does not have any of the titles I want.

Netflix is not going bankrupt. They are losing revenue growth negatively but there's no doubt that when it comes to service it's still a brilliant idea and about as cutting edge as renting can possibly be.

No, no bankruptcy here. If you bought above a 50 pe you should not be surprised, but the only issues with regard to their accounting methods is that they recognize profit by recognizing revenue earned too quickly, but as a common service and kind of subscription based business model, it will never stop making money. It will, however, stop earning excessive economic profits, and there's no possibility this company's going bankrupt. Whoever thinks that will lose money, but the only issues with Netflix are the commonly known issues with whether to recognize revenue as earned when somebody subscribes or whether to recognize revenue from the entire year when somebody subscribes, and this is all it's about.

It's like a newspaper or magazine. They need to choose when to count subscriber revenue, and the only thing I see is NFLX booking profits and subsequently revenue a bit too soon. That's the only issue, and it's not one that will ever bankrupt an enormously profitable company. Their pe's are still very high, but there's no losses in earnings so there's no possibility of bankruptcy. That's probably a fear mongering rumour employed by the OP who is most likely short and trying to give the impression that things are falling apart at NFLX when it still earns a profit, therefore there is no possibility of zero net equity.

PE's around 18, now, so that's much more in-line with where NFLX will trade long term, and, again, there isn't any evidence of financial distress other than lost revenue growth but this should have been expected just by basic supply-demand curve economics. Raise the price by moving supply and you will guaranteed not even almost always but ALWAYS lose revenue if it is not where the elasticity of supply was 0. Apparently they lowered their supply curves so extremely that they'll be sure to lose revenue for at least 1 or 2 consecutive quarters and bottom out from there.
 
Quote from Pekelo:

In your dreams. Most Europeans don't speak English, so they have to stream in their native language>>>cost. And you expect Europe to have 3 times as many subscribers as in the USA???
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When movies are shown in international markets they are translated to various languages. Since when are we the only place in the world that has movies. There are BOLLYWOOD movies that have significant traffic. And FYI China has significant users who speak english as well. Japan has many movie viewers as well and since its a file stream no shipping is involved. The movies are streamed in the native languages. YOU SHOULD SEE RAMBO IN FRENCH.

In 2009 Blockbuster went under doing a few Billion in revenue and owing 500 million. This market for entertainment is huge.
http://www.wikinvest.com/stock/Blockbuster_(BLOAQ)

Imagine the possibilities of having Now costs except hosting for subscribers. The broadcast rights are the reason Netflix is a force to be held.
 
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