I looked at buying some, it's generally a good idea to buy a fundamentally solid company after an overreaction to a good-long-term/bad-short-term decision. I bought Starbucks right after they got hammered for closing a bunch of stores a few years ago and it did really well.
But their price/earnings ratio is still 42.86, which seems high. For perspective, Microsoft is at 9.99 (disclaimer: I own some) and Apple is at 15.56.
That means Netflix could double their earnings, and still cost more on a per earning basis than Apple. I just don't see it as a good buy, especially with some tough competitors in streaming content like Amazon, Apple, Hulu, etc.
It seems to me like there's lots of very solid buys that are undervalued, going for a sexy industry with a high P/E, no dividend, not much in the way of patents or strong assets, and tough competitors... yeah, I think Netflix is a brilliant company, but I'm not buying their stock at these prices.
But their price/earnings ratio is still 42.86, which seems high. For perspective, Microsoft is at 9.99 (disclaimer: I own some) and Apple is at 15.56.
That means Netflix could double their earnings, and still cost more on a per earning basis than Apple. I just don't see it as a good buy, especially with some tough competitors in streaming content like Amazon, Apple, Hulu, etc.
It seems to me like there's lots of very solid buys that are undervalued, going for a sexy industry with a high P/E, no dividend, not much in the way of patents or strong assets, and tough competitors... yeah, I think Netflix is a brilliant company, but I'm not buying their stock at these prices.