Whitney Tilson: Why We Covered Our Netflix Short
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Whitney Tilson: Why We Covered Our Netflix Short
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Re: Whitney Tilson: Why We Covered Our Netflix Short
#2Here was Reed Hastings' response to their bearish recommendation in December: http://seekingalpha.com/article/242653-netflix-ceo-reed-hast...
Re: Whitney Tilson: Why We Covered Our Netflix Short
#3WTG NFLX! More power to you. You allowed to me stay free of Cable for last one year. Love you.
Hastings made the right bet by focusing on the streaming. That's clearly the future and I'm glad they are planning to go ahead with streaming delas with full steam. Hope the studios realize this and partner with them.
Re: Whitney Tilson: Why We Covered Our Netflix Short
#4The main reason I'm not a netflix subscriber is that I would never get anything done because I'd be sitting around watching video all day.
Re: Whitney Tilson: Why We Covered Our Netflix Short
#5Pretty sure the studios, once Netflix is all/mostly streaming will simply change the licensing costs to pilfer most of the profit, why wouldn't they? Without their content Netflix has nothing. Before they were insulated from this via the First Sale Doctorine and distribution through the mail. If they go all streaming the content producers can change licensing costs (already happening) and there is almost no barrier to entry (anyone can stream videos, see Hulu, Amazon, etc...) As a consumer I love Netflix streaming, from a business perspective it seems like a bad idea. Let's hope I am wrong.
Re: Whitney Tilson: Why We Covered Our Netflix Short
#6Has anyone else noticed a distinct dive in Netflix streaming quality over the past few weeks? I used to be able to watch their full HD videos nearly instantly, and now I'm lucky if I get the lowest quality-- about half the time videos won't even start.
I haven't changed anything on my end that I'm aware of. Still, I can't believe this is all on Netflix's end, can it?
Re: Whitney Tilson: Why We Covered Our Netflix Short
#7I think the most important part of the article is the quote at then end saying that just because they aren't interested in buying it doesn't make it a good short. The market can stay irrational longer than you can stay solvent and all that.
75x trailing earnings in the current economic environments SEEMS expensive to me. I'd be willing to bet (but not with real money) that it will be cheaper in 12 months. Of course, as a Netflix subscriber, I'm glad the streaming side of things is going so well.
Re: Whitney Tilson: Why We Covered Our Netflix Short
#8Has anyone else noticed a distinct dive in Netflix streaming quality over the past few weeks? I used to be able to watch their full HD videos nearly instantly, and now I'm lucky if I get the lowest quality-- about half the time videos won't even start. I haven't changed anything on my end that I'm aware of. Still, I can't believe this is all on Netflix's end, can it?
Your ISP likely is throttling Netflix data.
Re: Whitney Tilson: Why We Covered Our Netflix Short
#9Unless you know something everyone else doesn't (which would make this illegal), it's never a good idea to short a high valuation stock. Sure it may be overpriced, but you have to be one hell of an oracle to predict WHEN that correction will come.
If you insist on doing this, do it soon after the house of cards start to fall, but not before.
But kudos to this guy for adjusting his firmly held thesis. When money's on the line, it seems people are willing to reject their prior wrong beliefs much more easily.
Re: Whitney Tilson: Why We Covered Our Netflix Short
#10Pretty sure the studios, once Netflix is all/mostly streaming will simply change the licensing costs to pilfer most of the profit, why wouldn't they? Without their content Netflix has nothing. Before they were insulated from this via the First Sale Doctorine and distribution through the mail. If they go all streaming the content producers can change licensing costs (already happening) and there is almost no barrier t…
But without Netflix, how valuable is their content?