Soooo... The share price of Netflix
has actually ballooned up to the highs of 226.00 and you're currently wondering well is this growth sustainable... More often than not, I've seen substantial growth on several stocks only for them to come back into their normal range, leading to my next point sometimes substantial growth doesn't mean that it's sustainable... Prices may just sober up and fall flat on it's back much like myself when I've had a few beers to drink. So sometime back in the last quarter I received an email telling me that on my Netflix
account the subscription fee will increase. Well I didn't really mind too much because well I don't watch TV and I love my animal programs. So of course I paid the premium. Now two things have occurred here. Either my sentiments have been echoed through the markets or Netflix
are currently hiding something or even worse window dressing the company. Making the corporation appear to be much more profitable than it really is. It might not be that because apparently ''subscriber growth has surpassed their own expectation'' Could it be that this company is so credible that price tolerance is virutally non-existence? IS NETFLIX
THE NEW APPLE
OF IT'S INDUSTRY? I won't bother talking about it's competitors, but just remember this have a look at it's current P/E Ratio
(Price to Earnings
) in contrast to it's future P/E if this appears to be way too good to be true... 9/10 it really is unfortunately
. HAVING SAID ALL OF THIS. I strongly anticipate prices to surpass the 250 Price Region.
Be very careful in how you approach this with leveraged trading.
MY NEXT POTENTIAL UPDATE ON THIS COULD BE A NETFLIX SHORT!