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Netflix is now worth more than $100B

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Re: Netflix is now worth more than $100B

#131

Post by icedchai »

rubidium wrote: post #115
icedchai wrote: post #75

Earlier quoted context omitted.

What choice do we have? Keep your money in cash? Invest in bonds for 4% return? No thanks, I'll take my chances, especially with true inflation being higher than people think... Right now I'm gradually liquidating my crypto stash and buying stocks instead.

Please guide me to the 4% bonds.

You can find several high yield bond funds in that range. Here's a 5% bond fund: FIHBX https://finance.yahoo.com/quote/FIHBX/performance?p=FIHBX

Here's another at 6% : PHYSX https://finance.yahoo.com/quote/PHYSX?p=PHYSX

Less risky (municipal) at 4%: MMHYX https://finance.yahoo.com/quote/MMHYX/profile?p=MMHYX

Re: Netflix is now worth more than $100B

#132

Post by kuschku »

dvt wrote: post #24
Spivak wrote: post #5

Earlier quoted context omitted.

It's really a boom and bust. As Netflix's 3rd party library continue to be siphoned off more people will turn to piracy because they're not going to subscribe to n different services.

N different services still come out cheaper than cable. I pay for Netflix, Hulu, and Amazon Prime (which comes with Video) so let's say ~ $30 a month. Compared to Cox Cable, it's not even close -- $30 is Cox' entry level cable offering (and I can't share it with my family, nor watch shows at my own leisure). My bet is that there's plenty of cash still left. Until cable companies wise up (which is probably never), Net…

I’m in Germany. My internet and phone bill is 27€/month. I – as many Germans – watch via satellite, so I pay 0€/month for private TV. The public broadcasting fee is 18€/month per household, no matter how many people live in one.

Netflix is definitely not going to be cheaper, and adding Amazon Prime and the other services on top even less. And I still wouldn’t get all the same content.

Re: Netflix is now worth more than $100B

#133

Post by js2 »

mobilefriendly wrote: post #118
edpichler wrote: post #107

I study stock market for more than a decade, for long term, and I perfectly now that company data should not be analysed in a isolatedly, but, any stock with P/E ratio 230.24 you need to be very careful, and put just the money you can afford to lose without disturb your sleep. For whom that does not understand company ratios, a P/E ratio 230.24 is meaning that you need 230 years of profits to return to you the price…

This is nonsense. P/E is a measure of earnings against the price of one share. A high P/E does show that current earnings are small (or negative) in relation to share price, but there's no time component inherent in P/E.

edpichler's description of P/E is correct. Quoting from wikipedia for a slightly more formal definition:

"Trailing P/E" uses the weighted average number of common shares in issue divided by the net income for the most recent 12-month period. This is the most common meaning of "P/E" if no other qualifier is specified.

https://en.wikipedia.org/wiki/Price–earnings_ratio

Re: Netflix is now worth more than $100B

#134

Post by iamgopal »

edpichler wrote: post #127
brown9-2 wrote: post #109

Earlier quoted context omitted.

If netflix doesn’t pay a dividend, does a P/E analysis still make any sense?

For sure, dividends donesn't mean nothing here. If a company is profitable and don't pay dividends to shareholders, they need to do something with the money that are accumulating, and they will invest on the company (new machines, products, services, etc. all accordingly with the company strategy), and if the company grows with this investments, the stock price will follows it.

How stock price follow it ? In a hypothetical scenario, if company declare not to pay any dividend any time in the future, nobody will invest in it no matter what.

Re: Netflix is now worth more than $100B

#135

Post by ihsw2 »

bulldoa wrote: post #111
edpichler wrote: post #107

I study stock market for more than a decade, for long term, and I perfectly now that company data should not be analysed in a isolatedly, but, any stock with P/E ratio 230.24 you need to be very careful, and put just the money you can afford to lose without disturb your sleep. For whom that does not understand company ratios, a P/E ratio 230.24 is meaning that you need 230 years of profits to return to you the price…

What does this mean for amazon (currently pe ratio of 300+)

Investors buy Amazon because it's popular, not that its financials make sense.

Re: Netflix is now worth more than $100B

#136

Post by JetSpiegel »

joering2 wrote: post #100
jtmcmc wrote: post #74

Earlier quoted context omitted.

at the scale netflix transfers data they pay much much less than this. They also do direct peering and will put boxes in your ISP datacenter - https://openconnect.netflix.com/en/

Im sorry it still doesnt make sense to me. "buy 1 tone of fish pay $10 per kg", "buy 10,000 tone of fish, pay 1 cent". Doesnt make sense!! At some point more is not that much cheaper. I doubt coming back to my CDN asking for price on 1,000 TB would bring price to 1 cent per TB.

If they have a box in your ISP with a cache of the content, those Gigabits are coming from a a LAN and are basically free, only limited by the infrastructure.

Re: Netflix is now worth more than $100B

#137

Post by jonknee »

brucephillips wrote: post #123
mobilefriendly wrote: post #118

Earlier quoted context omitted.

This is nonsense. P/E is a measure of earnings against the price of one share. A high P/E does show that current earnings are small (or negative) in relation to share price, but there's no time component inherent in P/E.

There absolutely is. For a company to be valuable, it must return more profit to shareholders than they put in. The P/E ratio indicates how long it will take for this to happen.

Not really, it indicates how long if nothing changes over the long term. Which never happens. Netflix is growing very rapidly which makes P/E all but meaningless for "how long" questions.

Re: Netflix is now worth more than $100B

#138

Post by edpichler »

mobilefriendly wrote: post #118
edpichler wrote: post #107

I study stock market for more than a decade, for long term, and I perfectly now that company data should not be analysed in a isolatedly, but, any stock with P/E ratio 230.24 you need to be very careful, and put just the money you can afford to lose without disturb your sleep. For whom that does not understand company ratios, a P/E ratio 230.24 is meaning that you need 230 years of profits to return to you the price…

This is nonsense. P/E is a measure of earnings against the price of one share. A high P/E does show that current earnings are small (or negative) in relation to share price, but there's no time component inherent in P/E.

A high P/E shows that the current profits are very far from the stock price. The expectation of grow are high. Good companies has high P/E too. On this case, 230 P/E is a really high expectation.

Re: Netflix is now worth more than $100B

#139

Post by aphextron »

KaoruAoiShiho wrote: post #76
aphextron wrote: post #62

Earlier quoted context omitted.

>Cryptocurrencies and ICOs. What value is being created here, exactly? There's plenty of idealistic notions being thrown around, but I've yet to see a single, real, useful product or service materialize >Applied neural networks. Same. >Automation. This is way too broad to be invested in. Of course the world is automating at a greater rate, but is this a cause for growth? Will automated factories produce more goods fo…

> Again, how is this growth? People will simply replace their existing cars at a known rate with electric cars as they become available/affordable From investor pov you can short dinos and ride disruptors. ez $$. Not saying tsla isn't overvalued though.

>From investor pov you can short dinos and ride disruptors. ez $$. Not saying tsla isn't overvalued though.

Except the "dinos" of GM, Nissan, BMW, Ford, and Hyundai are outproducing Tesla in the EV market, with a clear lead in affordability. Nissan Leaf is far and away the most popular EV ever built, having sold thousands more than all Tesla models combined (discounting unfulfilled preorders).

Re: Netflix is now worth more than $100B

#140

Post by aphextron »

rubidium wrote: post #115
icedchai wrote: post #75

Earlier quoted context omitted.

What choice do we have? Keep your money in cash? Invest in bonds for 4% return? No thanks, I'll take my chances, especially with true inflation being higher than people think... Right now I'm gradually liquidating my crypto stash and buying stocks instead.

Please guide me to the 4% bonds.

T-bills are headed that way...
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