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A lot has to go right to justify the current share price of Netflix (NFLX -0.7%), argues...

A lot has to go right to justify the current share price of Netflix (NFLX -0.7%), argues Barron's. Analysts see only a modest 13% revenue growth rate between now and 2017, but forecast operating margins to quadruple over the same time period. Expensive content deals and heightened streaming competition from Amazon, Redbox, and others could get in the way of those lush margins.
Comments (2)
  • Jim Cramer wants AAPL to buy Nflx.
    Why bother, aapl could start its own business at a much lower cost since the barriers to entry are so low.
    Nflx is way overvaled here and heading back to $60.
    14 Mar 2013, 11:51 AM Reply Like
  • The idea that AAPL is even thinking about buying NFLX has no foundation in reality. Acquire what? NFLX is a limited streaming catalog peppered with some of the industry's most expensive content licensing deals, with a smattering of some of its most expensive originals in production. Meanwhile, their value proposition to customers is "cheap," locking NLFX into low margins. The streaming platform itself AAPL could easily replicate. AAPL doesn't make $10B+ acquisitions anyway; their largest ever was $400M (NeXT).
    14 Mar 2013, 01:14 PM Reply Like
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