Netflix (NFLX +24.6%) continues to skyrocket as sell-side PTs surge following a Q1 beat fueled...

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.

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Comments (5)
  • wyostocks
    , contributor
    Comments (9114) | Send Message
    Anyone look at the cash flow? This is a bubble. Perhaps analysts should be taught to read balance sheets.
    23 Apr 2013, 09:34 AM Reply Like
  • labas112
    , contributor
    Comments (498) | Send Message
    Nah that is too simple. Haha
    23 Apr 2013, 09:37 AM Reply Like
  • Joe2922
    , contributor
    Comments (477) | Send Message
    Stocks like this, with a "bright future" and a high short interest, do great in a bull market. NFLX fell from $300 to $50, too.
    The next bear cycle will price stocks like this much more short term. Here are 5 charts that say it's time to SELL!
    23 Apr 2013, 09:44 AM Reply Like
  • Mark Duthe
    , contributor
    Comments (2) | Send Message
    Agreed. Anyone in this thing should be standing by the exit.
    23 Apr 2013, 12:10 PM Reply Like
  • richernow
    , contributor
    Comments (47) | Send Message
    Got my teeth kicked in on my nflx short position. ouch.
    all the pro-short comments here are easing the pain while i wait for the pull back.
    23 Apr 2013, 05:07 PM Reply Like
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