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Bye bye Netflix

IH8Rice

I'm Mr. Negative! I Fail!
Aug 2, 2008
24,524
494
Im over here now

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
21,443
6,904
Colorado
We're actually looking at canceling the service. We don't watch many movies right now and we have a Blockbuster box at the Safeway across the street. Hulu gives us more than we need with better variety, and for the same price.
 

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
21,443
6,904
Colorado
Dante is closer onto the spot. Their PE is getting to a more reasonable level, but they are still a sinking ship. If the PE drops below 10, I would definitely look at it. I do still think they are going Blockbuster's route.
 

jonKranked

Detective Dookie
Nov 10, 2005
85,171
23,823
media blackout
tl;dr version:

2011q3:

loss of 800,000 subscribers..... but still have 23.8 million subscribers, a loss of 3.25%

their stock is down something like 26%.... but earnings for the quarter was still UP by 65%

the only explanation is that the stock market is on lots and lots of drugs.
 

dante

Unabomber
Feb 13, 2004
8,807
9
looking for classic NE singletrack
tl;dr version:

2011q3:

loss of 800,000 subscribers..... but still have 23.8 million subscribers, a loss of 3.25%

their stock is down something like 26%.... but earnings for the quarter was still UP by 65%

the only explanation is that the stock market is on lots and lots of drugs.
P/E = The rate at which you'd recoup your investment in a company. P/E of 50+ means it would take 50 years at the current revenue stream for you to recoup your investment. The current P/E of 17 means it would take 17 years if everything stayed the same for you to recoup your investment (and this is just earnings, not dividends. You'll just be gaining theoretical ownership in the company as opposed to additional cash).

People buy high P/E stocks because they're expecting explosive growth. The revenue might only be X now, but in another couple years it'll be 5 times X, or 10 times X. NFLX had been on a path of explosive growth, and now they're suddenly not anymore. You can't look at the $75 price tag and think that since it was once worth $300 it's now cheap, you have to look at it compared to other stocks that might have the same growth pattern. Google is sitting at a 21 P/E (more expensive than Netflix), and AAPL is at just under 15 (less expensive than Netflix). So for NFLX to be a bargain, it would have to have a significantly higher growth potential than Apple, and maybe even a higher growth potential than Google. *That* I don't see happening anytime soon, especially if they're losing customers at the moment...
 

jonKranked

Detective Dookie
Nov 10, 2005
85,171
23,823
media blackout
P/E = The rate at which you'd recoup your investment in a company. P/E of 50+ means it would take 50 years at the current revenue stream for you to recoup your investment. The current P/E of 17 means it would take 17 years if everything stayed the same for you to recoup your investment (and this is just earnings, not dividends. You'll just be gaining theoretical ownership in the company as opposed to additional cash).

People buy high P/E stocks because they're expecting explosive growth. The revenue might only be X now, but in another couple years it'll be 5 times X, or 10 times X. NFLX had been on a path of explosive growth, and now they're suddenly not anymore. You can't look at the $75 price tag and think that since it was once worth $300 it's now cheap, you have to look at it compared to other stocks that might have the same growth pattern. Google is sitting at a 21 P/E (more expensive than Netflix), and AAPL is at just under 15 (less expensive than Netflix). So for NFLX to be a bargain, it would have to have a significantly higher growth potential than Apple, and maybe even a higher growth potential than Google. *That* I don't see happening anytime soon, especially if they're losing customers at the moment...
tl;dr; where do i get the stock market drugs?
 

dante

Unabomber
Feb 13, 2004
8,807
9
looking for classic NE singletrack
tl;dr; where do i get the stock market drugs?
By the way, here's a pretty concise view of why Netflix's stock is where it is.

So what is Netflix worth? Earnings for 2012 are likely to be deeply depressed, forcing investors to look to 2013. Even if the company returns to roughly this year's level of $4 in earnings per share by then, the current price implies a multiple of 20 times. With doubts about whether the company can afford to invest—let alone succeed—overseas, it's too early for investors to re-subscribe.
Oh, and stock market drugs are here.
 

IH8Rice

I'm Mr. Negative! I Fail!
Aug 2, 2008
24,524
494
Im over here now
doh. was hoping to cancel gamefly and just have one account w/ netflix
During today's earnings call with investors, Netflix CEO Reed Hastings announced that the company no longer plans to rent videos games along side DVDs and Blu-rays. The video game rental plan was part of the disastrous Qwikster spin-off business that ultimately crashed and burned.
http://gizmodo.com/5879417/netflix-decides-to-ditch-video-game-rentals
 

cmc

Turbo Monkey
Nov 17, 2006
2,052
6
austin
Well, Netflix is still here, but they seem to constantly make the site more stupid.

Last, it was all the pictures of movie covers (maybe they think people need a screen to look like a shelf in an old video rental store??).

Now, they seem to think it is too difficult for me to read my own instant queue:

"After you’ve added several titles to your list, our technology will go to work and sort your List, presenting you with the titles you’re most likely to want to watch right up front."


http://www.slate.com/blogs/browbeat/2013/08/21/netflix_instant_queue_gone_now_my_list_get_your_instant_queue_back_in_two.html

http://blog.netflix.com/2013/08/introducing-my-list-from-netflix.html
 
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