Seeking Alpha

No shutdown for shares of Netflix in early trading

  • Netflix (NFLX) lands a generous price target hike from MKM Partners on its view the streaming service's international subscriber totals will surprise.
  • The investment firm's thesis on Netflix is more focused on global mass penetration than pricing in the U.S.
  • NFLX +1.9% to $315, 17.5% short of MKM's new PT of $370.
Comments (7)
  • Momintn
    , contributor
    Comments (3801) | Send Message
     
    Do investors want to pay $300+ for a company's shares when their earnings estimates are going down for the Dec/13 quarter? Maybe the estimates are just going down for a beat, but if not then here is what it is:
    .49 (A 6/13) .48 (E 9/13) .46 (E 12/13)
    If things are so great, why are estimates not higher rather than lower?
    1 Oct 2013, 08:59 AM Reply Like
  • vandeley
    , contributor
    Comments (108) | Send Message
     
    That's how these momo stocks works. The banks keep raising price targets but never their estimates, so the companies can easily beat the expectations.
    1 Oct 2013, 10:55 AM Reply Like
  • Karlos DW
    , contributor
    Comments (28) | Send Message
     
    Don't try to do analysis on this stock-no one else does. We're heading back to the late 90's on this one.
    1 Oct 2013, 11:04 AM Reply Like
  • Sakelaris
    , contributor
    Comments (1224) | Send Message
     
    MKM predicts $370 per share.

     

    The consumer market wants what Netflix offers!
    1 Oct 2013, 09:04 AM Reply Like
  • Vick13
    , contributor
    Comments (128) | Send Message
     
    It's stocks like NFLX with the greater fool theory that confirm what a sham the stock market, wall street institutions and analyst crooks are all about. There is no grip on reality.

     

    The company has gone from $70 to $320 in 10 months with 1 "OK" quarter where they made a .49 cent profit. A $15B increase in market cap for what is essentially a distribution company that is overpaying for product. WHAT A JOKE
    1 Oct 2013, 02:10 PM Reply Like
  • richernow
    , contributor
    Comments (46) | Send Message
     
    Who's manipulating and how?
    1 Oct 2013, 11:26 PM Reply Like
  • Karlos DW
    , contributor
    Comments (28) | Send Message
     
    It's quite simple the stock is a simple momo trade, there's no way the stock can be valued at $325 even on a forward P/E. So as in the late 90's analysts look for where the easy money is, ie. where the man on the street is throwing money at a stock without reason thought or analysis. The analysts know that by stating a stock is a buy & raising the price target the herd mentality will kick in amongst the retail investors who blindly follow the crowd. Meanwhile the analysts clients, who were made prior aware of the upcoming valuation hike, make a pretty penny in a short period. As in the 90's this will have a nasty ending, it is coming & I would guess sooner rather than later.
    2 Oct 2013, 04:32 AM Reply Like
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