Friday, December 30, 2011

Go With The Crowd And Short Netflix

Go With The Crowd And Short Netflix: By Ryan Canady:

Poor Netflix (NFLX). The company with which many investors seemingly had a summer fling has now started to endure the painful breakup period with so many of its subscribes and investors. Most have heard about the well-documented blunders of Qwikster and the price increase for Netflix services. These two situations led to more than 1 million subscribers leaving the company. However, this is just the tip of the iceberg when it comes to the challenges that Netflix will have to face in the coming years.



The Poor Get Poorer


While some companies are great to pick up at dramatically reduced prices, NFLX is not one of them. This stock has been smacked down from its 52 week high of $304.79 down to a closing price of $69.30 on December 29). Not a falling knife to grab, Netflix has a target price as low as $45 a share with the median


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