kdewalt

Pacific Growth Raises Netflix Estimates - Belatedly? (NFLX)

I highly recommend that any individual investors or analysts listen to the recent analyst day presentation. The company has several strong emerging trends at its sails: popularity of DVDs, weakening competition, consumer comfort with e-commerce, and growth in home theater. In addition, the managment does a fine job of outlining the competitve moat around its business. Anyone who has ever managed a distributed operation or enterprise custom software development process will be impressed.

With the exception of the pricing blunders last year, the management has been successful at making bold predictions and meeting expectations. If their characterization of cost leadership and the addressable market size are correct, this company could indeed become one of the top consumer services in the world on par with Soutwest.

Of course these presentations have be taken with a grain of salt and I'm long on the stock, but it is worth noting that there were few substantive challenges from the audience during the day.