Slowing growth is what management is talking about which in return should eventually reduce the P/E multiple. In order to maintain a 35/40 multiple, there can NOT be any signs of weakness as we are seeing now.
The 50+% boost from BBI's demise was overdone.
Toudo.com and YOUKU (free Chinese sites) are still free and when they start charging customers (and pay royalties) they will not only be legitimate competition but will cost less than NFLX. Their cost structure is lower and are willing to work on smaller margins.
AMZN and AAPL don't have the traffic that these two have outside the U.S.... also, both are upgrading their servers for faster on-line streaming (no need to download).
It is beginning to look like a five-way-horse-race, assuming BBI gives up altogether.
Wall Street Breakfast: Must-Know News [View article]
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Slowing growth is what management is talking about which in return should eventually reduce the P/E multiple. In order to maintain a 35/40 multiple, there can NOT be any signs of weakness as we are seeing now.
The 50+% boost from BBI's demise was overdone.
Toudo.com and YOUKU (free Chinese sites) are still free and when they start charging customers (and pay royalties) they will not only be legitimate competition but will cost less than NFLX. Their cost structure is lower and are willing to work on smaller margins.
AMZN and AAPL don't have the traffic that these two have outside the U.S.... also, both are upgrading their servers for faster on-line streaming (no need to download).
It is beginning to look like a five-way-horse-race, assuming BBI gives up altogether.
CrossProfit