Netflix is short # 2

First of all which one is short # 1? Well GMCR was short #1 and now it seems to have stabilized. So avoid it.

Let’s look at NFLX –

  • Once upon a time there was a stock that was darling of wall street. Ok let’s restart.
  • Once upon a time there was a suicidal CEO and blah! blah! blah! You know what I mean.

But one question – why is he still running the show?

Netflix came up with its fiscal Q1 numbers. To everyone’s surprise they did good.

Netflix said sales rose 21% to $869.8 million, just topping analysts’ views of $866 million. For the current quarter, based on the midpoint of its guidance, Netflix expects to earn 2 cents a share on sales of $884 million. Analysts were expecting a loss of 18 cents a share, but also were expecting revenue of $895 million. But Netflix said it expects to add 200,000 to 800,000 net new domestic subscribers in Q2, below what analysts were looking for 1.2 million.

The stock is still up 47% for the year, after crashing 77% in the second half of 2011 on an ill-timed price hike and other missteps.



Initiate a short at $91. Double it at $97. Keep the stop-loss at $103. This stock will move towards. $60.