Below is a note written by CEO Keith McCullough:
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I've been waiting, patiently, for a Netflix (NFLX) bounce to send you a SELL signal on, and we're getting one this morning. Our new Communications Analyst, Andrew Freedman, is one of the few NFLX public bears who is "in the money" on timing the NFLX short. Here's an interesting excerpt from one of his recent Institutional Research notes on the name: "We spoke with a former Content Director at Netflix and Amazon Studios to better understand the economics of licensed versus original content, the competitive landscape and where the market is headed. Our contact detailed Netflix's long history of paying 30-75% above market for licensed content and a competitive landscape that has quickly turned against them. In the case of the pay one deal with Disney, NFLX was willing to outbid anyone else, in a transaction ultimately costing NFLX $350 - $500 million per year." Sell the bounce, KM |
