Netflix looks grossly overvalued: Barron's

|By:, SA News Editor

Netflix (NFLX -1%) could easily fall by 50% if its volatile past track period is any indication, speculates Barron's.

Escalating programming costs could create a "snowball drag" on earnings that could be difficult to catch up to with cable operators likely to keep content bidding moving even higher.

A last sobering thought for Netflix longs from Barron's is the publication's conclusion that even if NFLX share price halved, the company's forward P-E looks rich at 23.