Whoever penned this report at Wedbush is braindead. First of all, Wedbush is just about the worst firm on Wall Street. If you’re an advisor at Wedbush, you should be embarrassed to say so. If I worked there and someone asked me where I worked, I’d say I was a manager at Taco Bell or some shit. The very essence of Wedbush is spirited depravity. Having said that, Wedbush slapped a $50 tgt on Wall Street’s best company today, Netflix.
I realize the PE at 300+ is somewhat excessive.
But look at the growth, son. Revenues are off the charts and Stranger Things is a smash hit.
On a p/s basis, the current valuation isn’t all that excessive — based off previous years — post House of Cards.
Here is the Wedbush drivel.
Via Briefing.com
Wedbush continues to believe that Netflix is overvalued. They think that Netflix’s delay of the price increases scheduled for May created a lingering problem with investors – slowing domestic growth that will likely persist for another quarter as it “un-grandfathers” as many as 15 million more domestic subscribers over the next two months. Additionally, they think that Netflix’s current share price fails to address the potential for meaningful competition from Amazon (AMZN), which recently launched a video-only subscription option of its own. They acknowledge that Netflix has the much more powerful brand for SVOD, but they are confident that with its new standalone service, Amazon declared war on Netflix.
The Amazon service is completely different. No one uses NFLX for their bullshit, old, movies. It’s all about original programming and they have tonnes of it. Compared to the juvenilia at Amazon, they donkey-dick smack Bezos about his bald head.
When the apocalypse hits, everyone will be marooned in their homes watching NFLX.
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Copper taking the big dive
I hope FCX burns in hell.
Perfect analysis, Fly. One that so many people can’t seem to grasp…
Vix looking go a a rampage
the_swatter making fun of stock jockies for “investing” in 200-300 p/e unicorns… i dont feel sorry for said stock jockies….. pre 2008 a 50 p/e was looked upon as beyond ponzi, but today it’s p/e to infinity..
Non-gap earning means in 2008 terms the PE is really more closer to 600.
value investing….. and your co’s output of Spielberg lite rehash Stranger Things is justifying it all….
Word.
Whoever lets these things out at Hairbush should have asked the author before he or she started to name five Amazon original series and five Netflix original series.
I suggest the author would come up with two Amazon series at most and at least four on Netflix. I think they carry about 30 – and pay the creatives almost nothing in residuals.
That is the real disruption: going forward the broadcasters will ask the guilds for reduced residual payments and then the creatives will be slinging coffee and driving ubers on the side, just like the other 95% of the guild members who never get residuals anyway.
The robots are coming anyway, And also we are all going to die.
But probably we will still have NFLX.
my agent’s assistant drives an uber on the side…but he likes to drink… a lot….
lol
Good Dr., have you watched Stranger Things? Interested to hear your take if you have.
It felt like I was in the 80s again with my friends.
This has to be Michael Pachter at Wedbush. He was shitting on NFLX and promoting Blockbuster for years and he dissolved in a puddle of puke along with Blockbuster. He was telling clients to short Netflix at $4.