In the wake of 3Q16, Netflix (NFLX) is up nearly 20%. Is this price reaction justified? Have investors gotten too caught up in the “membership beat” or recently lowered expectations? Who’s paying attention to core issues like cash flow and competitive advantage? One thing is for sure; this jump in stock price only exacerbates the already high risk in the stock’s valuation.
In the wake of 3Q16, Netflix (NFLX) is up nearly 20%. Is this price reaction justified? Have investors gotten too caught up in the “membership beat” or recently lowered expectations? Who’s paying attention to core issues like cash flow and competitive advantage? One thing is for sure; this jump in stock price only exacerbates the already high risk in the stock’s valuation.
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