Netflix drops game rentals...before it even happens.
- Thread starter seanr1221
- Start date
They're getting cocky. I know that everyone was pleased today because they projected their earnings this quarter to be super low and they beat that, so that breathed life into their stock a bit. Their stock has went up almost $35 in the past month, it's weird. I don't understand what's happening. They haven't really added content and they're losing Starz.. why is it going up?
Survivalism
CAGiversary!
[quote name='Serpentor']I guess they don't see profits in game rentals...[/QUOTE]
Maybe $2 a night is ridiculous when you can probably go down the street and rent something for $5 a week.
Maybe $2 a night is ridiculous when you can probably go down the street and rent something for $5 a week.
BillyBob29
CAGiversary!
[quote name='Scorch']They're getting cocky. I know that everyone was pleased today because they projected their earnings this quarter to be super low and they beat that, so that breathed life into their stock a bit. Their stock has went up almost $35 in the past month, it's weird. I don't understand what's happening. They haven't really added content and they're losing Starz.. why is it going up?[/QUOTE]
It's all about expectations. The short sellers had been pounding shares for months on end then the company finally released some news that wasn't as bad as expected. That got shorts to cover.....which means they had to buy shares to cover their short position. This has a been a rally fueled by short covering.
NFLX doesn't trade on fundamentals. It is a pure momentum trader that is loved by intra-day traders because of its large average daily range. I trade it several times a week myself, not because I like the company but simply because its average trading range is over 3x as large as the S&P.
It's all about expectations. The short sellers had been pounding shares for months on end then the company finally released some news that wasn't as bad as expected. That got shorts to cover.....which means they had to buy shares to cover their short position. This has a been a rally fueled by short covering.
NFLX doesn't trade on fundamentals. It is a pure momentum trader that is loved by intra-day traders because of its large average daily range. I trade it several times a week myself, not because I like the company but simply because its average trading range is over 3x as large as the S&P.
bread's done