Netflix’s stock price rose 30 percent in 2012, but investor confidence can’t replace harsh reality. So says Wedbush Securities analyst Michael Pachter, who is bearish on the streaming and DVD company.
Pachter thinks Netflix stock is overvalued and that the company has already converted the majority of potential customers its going to get. The upcoming launch of Redbox Instant by Verizon and stronger competition from the likes of Amazon aren’t helping Netflix’s case either, according to Pachter. Said the analyst:
“Consensus estimates for domestic earnings power appear overly skewed in favor of domestic streaming, which we think generates $1.20 income per share, and we believe that Netflix’s DVD business ($3/share) will decline as international expansion (a loss of $4.20/share) continues, making profitability in 2013 unlikely,”
What do you think, Insiders? Are Netflix’s best days behind it?
[via Home Media Magazine]
I think the best is yet to come. RedBox will be no big hit to Netflix. It is way behind NetFlix. Yes I am looking to check it out. But I will still keep Netflix. I really think NetFlix is on the right track. It will take time, but they will end up on top.
You can’t beat $8.00 a month for all you can watch online. And If, and that is IF the RedBox deal is any good? Need to see how it will really be. But IF it is good. I will get that also. Right now I have NetFlix Online. And Block Buster two out at a time. And I cut the cord. No Cable TV. And not missing a thing..
Have a good one people.. And Rock on..
Empire building is KILLING NetFlix. It will have to do two things within the next fiscal cycle to stay a player:
1. Raise streaming and rental rates to converge to a break-even or better proposition.
2. Stop thinking its a MEDIA company and focus on streaming and distribution.
To Vernon,
Hi what you say is very true…..I see a price hike on the way. Not a big one. Maybe a $1.00 are so.. But something. And you are also right. They need to focus on the streaming.That is where it will all be in the years to come. I still like to have a DVD in my hand at times. But the days are coming to a end on that. So far the streaming where I am at is very good. No probs with it at all.
@DanoFive0
Do you think anyone is interested in the original programming Netfix has obtained or created?
Vernon Dent,
Hi. I don’t really think the original programming is a big deal. For some maybe.
Not me. I like the old TV shows and Movies. And one thing. I am hard of hearing.. And need CC Closed Caption. NetFlix is putting it on all the TV shows and movies. And will have it on all of them by 2014. Now this is where NetFlix can make a killing.
You have over 50 million people that need Closed Caption on there Movies and TV shows. They need to get it out that they have CC. Closed Caption on the TV shows and Movies online. I run into people all the time that do not know NetFlix has that.. I wonder if RedBox online will have Closed Caption? Time will tell.
Have a good one. And Rock On..
Are you and danofive0 twin brothers ?
Joe, I was wondering the same…
I agree w/ Vernon.. Netflix need to “Stop thinking its a MEDIA company and focus on streaming and distribution.” Delivering the media to us IS their mission statement.
I am one customer who is very unhappy with Netflix’s excuses for poor performance… they brag about expanding to different countries, yet don’t bother to upgrade their equipment to handle the demand. I have the numbers and tests to PROVE it is them, and not the ISP’s like they want you to believe…
Both Christmas and New Years eves’ (and Day) were next to Impossible to watch streaming movies on Netflix. They were aware of the problem and addressed it with generic excuses that there was a glitch and engineers are working on it… baloney!! Their servers cannot handle any sort of slight uptick in traffic… forget heavy traffic, and they know it!
If you offer a service, make sure it works like you claim, or customers WILL look for alternatives.
…and the price did go up…the original tag line was “8 bucks a month”… they no longer use the tag because it now it is 8.99 a month.
Hi,
My bill at NetFlix did not go up. Just got it. $7.99. A month…
And I had not prob over XMass and New Years. Working fine for me…But you are right. They are going to have to upgrade soon.. They will be running way to much not to…
I’d like to see Netflix get into the pay for streaming business for the newer movies, but do it at the same price as a Redbox rental. This would be a kickass option for me.
Netflix streaming is bad,has been bad and they have done nothing to improve it. when streaming was free with a dvd subscription,it was okay to be bad.limited choices. but now if you pay for streaming you do not have access to all the movies in the library.i came back to netflix,for 3 months,and saw no change from the initial offering of streaming.if you are a watch a movie once a week person yes it is great.
till that changes i see no growth in netflix.
I live in Tennessee (USA) and have only had a few problems with the Netflix online streaming. Here my problem is the ISP (Comcast) as it drops for some reason 2-3 times a day. It might be I’m in a smaller market and the demand is lower but so far so good.
I watch Netflix absolutely every day. I have never had an outage even at Christmas time and New Years and the quality is fantastic. If someone else had poor quality then it is their tv or internet provider because mine is supurb!!!
I still pay $7.99 a month. I love the old movies and tv shows but I get an awful lot of new movies also but I seldom watch them as they are mostly junk such as The Artist.
netflix streamin suckss!! so bad…all they have is low budget movies and stupid asian and indian movies!!!! who the hell want to watch an india movie!!!???? im waitn for redbox instant and will give them a try…