Seeking Alpha
View as an RSS Feed

Mark Duthe  

View Mark Duthe's Comments BY TICKER:

Latest comments  |  Highest rated
  • Netflix (NFLX +24.6%) continues to skyrocket as sell-side PTs surge following a Q1 beat fueled by higher margins (aided by a Y/Y drop in content cash outflows) and domestic streaming adds at the high end of Netflix's guidance; for now, the Street is willing to overlook Q2 guidance for a sizable Q/Q drop in domestic streaming adds. The results demonstrate Netflix's model "continues to show operating leverage," says Cantor, raising its PT to $230. On the earnings call, Reed Hastings admitted Hulu and Amazon have been "bidding more aggressively" over the last 12 months - that could explain the pending Viacom deal expiration. Content liabilities stood at $5.7B at the end of Q1, up $100M Q/Q. [View news story]
    Agreed. Anyone in this thing should be standing by the exit.
    Apr 23, 2013. 12:10 PM | 1 Like Like |Link to Comment
  • Is Netflix Out Of Troubled Waters? [View article]
    Their margins are getting crushed by the costs associated with adding content. Netflix has seen a 93% drop in operating cash flow, and an 87% decline in operating income over the past year, and they made just $17 M on $3.6 B in revenue last year. Add to that the fact that Netflix customers are not locked into contracts and you have ballooning costs (and debt) matched against an uncertain revenue stream. The only thing I'd consider buying related to NFLX at this valuation is put options.
    Mar 25, 2013. 01:23 PM | Likes Like |Link to Comment
1 Like