Monday, October 24, 2011

Netflix, will it surprise or disapoint?

This is going to be an interesting earnings announcement from Netflix(NFLX) on Monday. They are expected to report around 95 cents for the third quarter, on revenue of over $800 million. We should take note that according to Yahoo Finance they have beaten the EPS estimates the last three quarters, but this quarter might not be a beat. I believe that Netflix has been losing subscribers because of the price hike that the company put into effect in September. I myself have been considering leaving Netflix and I never thought this way before, but when they hiked the plan form $9.99 to $15.98 for my plan (1 DVD and unlimited streaming) it upset me. This has forced me to look at other alternatives like Amazon's prime streaming movie service. I know I am not the only one who is considering this and in fact I know some people have already left Netflix. I believe these numbers will show in their bottom line when they report on Monday. My prediction is that they will disappoint and will put pressure on shares of the stock. I am long AMZN and have no interests in owning NFLX.


  1. I agree! Is GOOGLE buying YAHOO? should I invest in yahoo now.


  2. I guess they disappointed : 0
    NFLX is a dead stock because the business model is no longer a moat, stay away from it everybody!