[lynxs_claw]

I like to discuss this and get input from the CB community.

I just saw this interview with Hastings and found out that their stocks are worth $220/share. Quite honestly I haven't paid too much attention to their stock but I was under the impression that it was around $20 not $200. After watching the video below,:

Netflix Is Better Off Independent: CEO Reed Hastings

I'm having trouble figuring out how it's worth that much compared to BB. You have Netflix that is $500M in debt a market cap of $10B, 36 million subscribers and only in 40 countries, where you have BB with say $2.8B in cash, market cap of $7B, 77 million subscribers and available in over 100 countries - stock at $15/share. Netlfix has just as many hard competitors like BB (Amazon, Hulu, etc.).

It's funny how in the CNBC video he avoids answering questions like ratings, how many people streamed Arrested Development at their big launch and again how he answers the BB question.

Also, I can believe how valued Hulu for such a small company (4M subscribers only)

DirecTV, two others bid over $1 billion for Hulu: source - Yahoo! Finance Canada

They've only stated the Hulu revenue of $700 million in the article and no mention to their debt or cash-on-hand or profit margin, etc.

Anyways, I'm no stock expert.. but just looking at the numbers comparing Netflix to BB, I just can't see the logic.

[dannyd86]

How many shares are out there for each company though. I'm no expert either but just because netflix is 200$ a share doesn't mean they are worth more then blackberry. Blackberry could have 5 times as many shares at a lower value


Posted via CB10
Attachment 167397
Attachment 167398
I think volume is total shares. Is market cap total worth of company? Don't ask me lol

[itsnotaboutart]

I agree with your confusion. I don't pretend to be an expert, but Netflix's price/earnings ratio of 542 appears comical. Blackberry is still technically in a loss position for the past year. I guess you could say that at least Netflix is making a profit.

I don't view cash versus debt as all that noteworthy unless you are talking about the liquidation value of the company.

There are many ways to measure the "true value" of a company. Share price, especially of technology stocks, seem largely based on the expectation of future profits regardless of the past or present situation. I guess Netflix's sky-high valuation indicates investors are much more confident in Netflix's future prospects than those of BlackBerry. Personally, I disagree. BlackBerry's challenges are well-known, but at least they have, at a minimum, a niche that is hard for others to penetrate and glimmers of optimism. By contrast, what Netflix has is a first-mover advantage in a market that has relatively low barriers to entry and products they largely don't control. If they keep prices low, they are restricted in how much they can pay for content. If they jack up prices, what stops people from jumping to Amazon Prime or another competitor.

But, as I said, I'm no expert.

[lynxs_claw]

How many shares are out there for each company though. I'm no expert either but just because netflix is 200$ a share doesn't mean they are worth more then blackberry. Blackberry could have 5 times as many shares at a lower value


Posted via CB10
Attachment 167397
Attachment 167398
I think volume is total shares. Is market cap total worth of company? Don't ask me lol

Yeah I forgot about that. Can't see your attachments but I think they're probably the stock profiles:




So there about a 10 times difference between Netflix and BB (BB being more shares). But even with that factor it looks like Netflix is worth way more. I could be reading this wrong.

Where the heck is Chris Umi when you need him

[ray689]

I like to discuss this and get input from the CB community.

I just saw this interview with Hastings and found out that their stocks are worth $220/share. Quite honestly I haven't paid too much attention to their stock but I was under the impression that it was around $20 not $200. After watching the video below,:

Netflix Is Better Off Independent: CEO Reed Hastings

I'm having trouble figuring out how it's worth that much compared to BB. You have Netflix that is $500M in debt a market cap of $10B, 36 million subscribers and only in 40 countries, where you have BB with say $2.8B in cash, market cap of $7B, 77 million subscribers and available in over 100 countries - stock at $15/share. Netlfix has just as many hard competitors like BB (Amazon, Hulu, etc.).

It's funny how in the CNBC video he avoids answering questions like ratings, how many people streamed Arrested Development at their big launch and again how he answers the BB question.

Also, I can believe how valued Hulu for such a small company (4M subscribers only)

DirecTV, two others bid over $1 billion for Hulu: source - Yahoo! Finance Canada

They've only stated the Hulu revenue of $700 million in the article and no mention to their debt or cash-on-hand or profit margin, etc.

Anyways, I'm no stock expert.. but just looking at the numbers comparing Netflix to BB, I just can't see the logic.

Maybe shows that the stock market is one big manipulated joke.

Posted via CB10

[itsnotaboutart]

Volume is the number of shares traded during the last trading day. It is not the total number of shares outstanding.

Market cap is the total number of shares outstanding multiplied by the current share price. Essentially, it is the total value of all of the company's common shares. Netflix's higher market cap means the company is currently worth more than Blackberry.

For example, assume there is a total of 10 million shares of a company that have been issued to investors, and that the only trade during the last day the stock exchange was open was a single trade of 1 million shares at $5.00. The "volume" would be 1 million. The "market cap" would be $50 million.

Netflix's higher market cap means the company is currently worth more than Blackberry.

[FastLane228]

I bought the stock 109 shares @$72 but I didn't hold long enough... i can kick myself so many times*

BBM CHANNEL C000EF854 < stocks*C0004ABC9<Pin friends meet

[FunGuyLover]

Share price isn't as relevant as market cap. Netflix has issued far fewer shares. Their market cap is $10 billion / $200 per share = 50 million shares.

BlackBerry has a market cap of $7 billion / $15 per share = 466 million shares. So the value per share is diluted.

Still, it doesn't seem rational that Netflix is valued at $10 billion while BlackBerry, with a much stronger portfolio of assets and far better financials is only worth $7 billion.

Either Netflix is way overvalued or BlackBerry is way undervalued.

Posted via CB10

[web99]

Netflix is deep into debit. They are losing subscribers and companies have been pulling their content. Personality, taking these factors into account, I don't see any logical reason why their share price is as high as it is at $220 a share.

To me their long term prospects look very gloomy unless they can find a way to quickly turn their fortunes around. Maybe some analysts can give us sound reasons for this, but looking at their financial situation and their performance in recent quarters, I think that their share price is significantly over valued


http://www.ibtimes.com/netflixs-loss...orecast-360756

Posted via CB10 from my spectacular Z10

[RADEoN1337]

IIRC Stock prices are based off of speculation, not actual value.

[MartyMcfly]

Netflix is deep into debit. They are losing subscribers and companies have been pulling their content. Personality, taking these factors into account, I don't see any logical reason why their share price is as high as it is at $220 a share.

To me their long term prospects look very gloomy unless they can find a way to quickly turn their fortunes around. Maybe some analysts can give us sound reasons for this, but looking at their financial situation and their performance in recent quarters, I think that their share price is significantly over valued


http://www.ibtimes.com/netflixs-loss...orecast-360756

Posted via CB10 from my spectacular Z10

Where are they losing subscribers? They added three customers million this year(2 million domestically).

Don't kill my vibe using Tapatalk

[bekkay]

Share price isn't as relevant as market cap. Netflix has issued far fewer shares. Their market cap is $10 billion / $200 per share = 50 million shares.

BlackBerry has a market cap of $7 billion / $15 per share = 466 million shares. So the value per share is diluted.

Still, it doesn't seem rational that Netflix is valued at $10 billion while BlackBerry, with a much stronger portfolio of assets and far better financials is only worth $7 billion.

Either Netflix is way overvalued or BlackBerry is way undervalued.

Posted via CB10

Agree on the meaninglessness of the PPS (price per share) numbers for comparing companies.

But disagree with the undervalued/overvalued part. The prices for both companies reflect what investors believe the companies are worth given all the available information as well as expectations as to what cash flows will be in the future.

A company can be undervalued or overvalued only if one side of the market (e.g. sellers) has some new information that the other side (e.g. buyers) doesn't. And that's only for a split second

[lynxs_claw]

My concern with Netflix is the same concern I had with Blockbuster. The amount they actually have to pay for their content vs. how much revenue they generate from their cheap rates. With more subscribership the more debt they could run into. If so I could see them not taking on more customers using BB devices. But does that make sense? Wouldn't the studios grant them more of a price break if they had more membership? And if so why not made the damn app for BB users?

All in all Netflixs may be walking a tight line especially if they'll lose membership by increasing their rates or losing control of their profit margins if the studios hike up their rates. It would be really interesting to know what kind of financial agreements they made and where it could be heading.