Netflix Implodes After Reporting Horrific Guidance; Notes It Repuchased Stock At $218 Avg Cost Basis
One hopes that the European surprise on Wednesday will be more successful than this. In the meantime, the XIRR on Jim Cramer's recommendation to buy NFLX on Sept 26 at $135 through the current AH price of $87 is -99.6%.
Earnings summary shows EPS forecast peaking at $0.70 which the street had at $1.10. Explains the epic collapse in the stock after hours.
Some highlights from the letter:
- We expect streaming net addition will be negative in October due to the cancellation wave referred to above
- We used $39.6 million in Q3 to repurchase 182,000 shares at an average cost basis of $218.
- After the repurchases we finished the quarter with $366 million in cash and equivalents
- We expect to report a global consolidated net loss in Q1 2012 as well as to consumer cash as we launch the UK
And here is why we repeat our warning from last year, that Netflix' business model demands a follow on offering:
- We expect our FCF to continue to lag net income for the next few
quarters as our spending on content continues to increase both
domestically and internationally - By pausing on further international expansion and halting buybacks, our current cash on hand is adequate to support the growth of the business. As we have done in the past, we will continue to evaluate the appropriate cash level for the business
Cramer buying at $135 on September 26, 2011
The IRR for anyone who listened to Cramer a month ago: -99.6%
In other news, sub $100 make that $87
Full earnings "investor letter"
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Where is RoboTimber?
Robo went to the post office to return his Netflix porno DVDs.
Tilson's got to be kicking himself in the ass for originally getting out of the trade, even though I think he later put the short back on!
NFLX was buying the stock to support the options of management...this is .com all over again. They wasted cash and profits to funnel to executives. Heads of these incompetent asses need to roll
Check out the latest from the Capital Research Institue "On Behalf of the 99%":
http://www.capitalresearchinstitute.org
"...the media for the most part is completely in the dark, at best, or complicit, at worst.
The point being, people don’t really know WHAT they want, in terms of reform. Thats why the ‘Change’ gimmick worked so well for Obama. Because people KNOW they want change, they just want someone to tell them what will be changed, and why that will be better. Herman Cain’s 9-9-9 plan is the exact same. People aren’t worried about the specifics, they just know they want change. Well, I am here to help steer the herd a little, as it were.
What is needed is the banning of usury, an end to the Federal Reserve System, and a return to Sound Money, for starters."
Herman Cain wants you to pay 9.99 for a slice of Diarrhea Pie.
Don't get stuck in an elevator after eating one of those like this guy...
http://www.youtube.com/watch?v=N0zp3bEj7Vg&feature=related
Future of USA
hmmm. Let me suggest that first we need to get REPRESENTATIVES in washington ... not shills. I suggest the best way to do this is to criminalize bribing of politicians via campaign contributions by organizations THAT CAN'T VOTE. The other kind of bribery is already illegal. If you can't vote, you can't bribe! This is not a violation of the first amendment because (1) organizations aren't people (they can't vote can they?) and (2) they can run any ads they want saying anything they want (without direction from a candidate).
Let's just be a simple fuck about it.
Netflix and hulu have one job. Destroy the old cable tv business model of television where shit was simply broadcast to dumb tvs and radios and replace it with a new business model where shit is broadcast to trackable mac addresses. Because you can't enforce rediculously high priced enterentainment without lots of jail and lawyer and data processing overhead. I mean seriously do you seriously think they can charge 100 120 bucks a month for cable and internet? Hell no they can't. Why do you think they switched to digital tv? To get more hi quality channel transmissions? NO because TV decoder boxes have a mac address and are "SMART".
The hollywood fucktard companies didn't start the cable companies and turn them into massive structure query language fucktard machines so they couldn't play god now did they?
They want to make more money on the new machinery than they made on the older simpler machinery and be more landlordish about it. Problem is they won't. Hulu is CBS fox news and disney which is wierdly comcast. Netflix is microsoft and all the mysterious fuckers behind them. Blockbuster is dish network which is a bunch of creepy ass jewish cell phone companies.
You are inside the biggest blackest box of monopolistic lying ass entertainment. It's a bit more complicated than executive profits. It's the power to make or break actors control their behaivor. Make them act out rediculous fucking farces of reality. Claw back payments with drugs. Because nobody will fucking protect you like an addict who gets drugs from you.
It's like that late show guy. The drew carey british guy. He's a fucking drug addict. He had several shows dedicated to making fun of gaddafi complete with fake audience laugh tracks and nothing behind it but celebrating jews.
All these tech companies are not tech companies. They are simply tech companies that are stitched to the entertianment and propaganda industries asshole. And they'll destroy their old companies to drive people to new "distribution" systems in a heart beat. If it means more power more control more ability to flavor the manipulation just so.
I just love netflix for the animefix - japanese still know to enjoy themselves.. maybe the stock will go down to $50 so I can buy back in where I sold before the run up :)
Nice Heph. Like the way your mind works. Interesting in-sights.
ORI
NFLX is the US economy in short hand writing
Actually, he tried to go to Vegas to convince the Pit Boss that he should be allowed to bet on a number AFTER the dice is thrown..
They have porno?
Yes, you even get to lick it as many times like you want.
It's very popular so it seems.
http://2.bp.blogspot.com/_o5swS_a08j4/S2r34uUz3iI/AAAAAAAAE54/z0E9dkxBXjc/s400/ObamaStamp.jpg
The irony here is that porn is probably one of the only things that could save Netflix..
too much free porn available like everywhere else
while true, there are people that don't want to surf to search and wade through the virus ridden interwebs to find it. There are more people who don't want to bother with it and would rent it for a few bucks than have to waste time trying to find it. It's a convenience cost.. nothing more.. and people pay for convenience all the time.
Pretty doubtful one would get a virus from free porn, haha! Who is this guy?
I wasn't referring to the free porn once you found it.. I was referring to acquiring during the search for it..
You must be running Windows 98.
You would be surprised how many hundreds of thousands of people don't know how to navigate the net and end up with nasty shit on their systems.
Those days are long gone. They can track you completely now. No need to fuck with your computer any more.
I mean sure it's not failsafe. I've been on the net where it throught It was someone else. It's a rush but it's also extremely difficult. The reason ad trackers and ad aware are gone is because you've got 6 to 12 ad bots attached to your ass every time you log in the internet. They get you from the second you enter the door and have you tagged till you log out.
lubetube.com
works great on smart phones too!
links to support your case???
Not to mention the irony that Robo's popularity around here seemed to plummet when stopped including porn in his posts.
Well if they wanted to do gay porn, they could always call it NetDix ....
How about Lesbian porn? NetLIX?
This is not funny, i just called Robo's mom and she said he just attempted to drown himself in the plastic kiddie pool in the backyard. The fire department is on its way. He will surely be placed on suicide watch.
Is anyone willing to be "on watch" ?
What a pussy. Shoulda just drank a glass of Drano like his dad did.
Shoulda just drank a glass of Drano like his dad did.
Ask his mom which one of his thousand fathers did that.
where is cramer?
His BUY BUY BUY at $295 went down the Cramerica memory hole a long time ago....
God Bless Jim Cramer
#WeCantWait for Cramer to go down his own memory hole.
you mean like this?
Jim Cramer: "Bear Stearns is Fine!" Tues, 3/11/08http://www.youtube.com/watch?v=gUkbdjetlY8
Was watching CNBC the other day and had volume down and closed caption on. Every time Cramer's name was mentioned by someone on air, CC typed 'Crimer'. How prescient.
Not funny at all, Robo was enjoying today's rally.
Too bad the puts on this Bag O' Shit, were a little expensive.
Robo will be fine, He will get back on his mule only to fall off, again.
http://www.youtube.com/watch?v=qcj_S6UReE8
Yea, where is that bull fucktard? Netflix was the highlight of his postings in June/July and before. So what happened Robo? Did the ZH 'smart money' catch you unaware? What say now?
LOL! Did Cramer really pimp Netflix? Too funny. What a ass he is.
NFLX is/was the next crox - http://hedge.ly/ddRcLk
Someone call Robo's mom and have her check on him in the basement please.
Auto-erotic asphixiation?
More like Autobot fixation. He likes Optimus Prime the best, it's just unfortunate the decals fall off in the bathtub.
Hey Robo,Robo , come out to play!
Hung foo, just like Carradiene. While listening to an old INXS cassette.
Robo is the best hindsight trader I have ever seen.
Short to 0. Nuff said.
Beat, but all about guidance on that POS going fwd
God, why didn't you tell me this 10 minutes ago so that I could buy it!! Gonna rip tomorrow!
July 13, 2011 NFLX: $298
October 24, 2011 NFLX: $99
I don't have a PHD in Economics but I think that is something like a 66% drop in stock price!
Hitler NFLX long at $298 downfall parody coming to YouTube in 3..2..1...
This just looks like a least-significant digit pricing trick...
I love timber. Great inflation hedge.
Well....the cynic in me says just like the Timber for APPL, and the susequent rise, will likely happen with NFLX too. Not that i give a shit because I wouln't go long anything this manufactored market. For now, at least something is going down. LOL.
nflx short...the gift that keeps on giving
I'm hoping for the same on the CMG puts I just bought.
it is looking a bit triple toppy isn't it? that move after earnings isn't going to last imo...to early to tell for sure but i've got the same trade on
edit: watching deck into earnings as well
How can you not play it short? Trading at P/E almost 2.5 times higher than industry average, in an industry that's got to be ready to tank.
CRM looks like a good short, too. Keeping my eyes on that one, ready to pounce.
man, CRM gave and then took a ton of my money in 08 LOL.
Would love to be short that pig, along with LULU and the entire CREIT complex, when the time is right.
I hear ya. I'm short LULU, too. Getting killed right now, but my puts are for March, so I still expect them to make it into the money, just paid too much for them when I bought. Oh well, it's all a gamble when it's just a game.
I'm there with you.
We'll see what happens.
For 18 months I watched and read the call for this stock to collapse on ZH. Weeks before it finally does, Not a word! By then I had switched off....another one bites the dust
Yeah, one thing I've realzied about ZH, is there is a lot of 20/20 hindsight going on.
You get what you pay for. By the way, who told you ZH provided forward-looking investment advice?
20/20 hindsight ? I thought Robocop was a goil ! A red head too....with carrot salad in front of her hind quarters ! Monedas 2011 Comedy Jihad Avatar Deception
By the way, who told you ZH provided forward-looking investment advice?
Ahhh... The Robot Trader guy? I think he loves NFLX, CROX, Krispy Kreme and Chipolte.
yeah, and you and the idiot cunt you replied to are the perfect example of what's wrong with zh: moronic fucks who talk shit and can't back it up. it's like you cheese dicks don't even actually read the blog, just throw out cut-and-paste "insults" to tyler et al.
fuck off and die, every single one of you.
You need to read the Comix once in a while ! Stop staring at all those charts ! Monedas 2011 Comedy Jihad Motherly Advice
d00da - keep taking those happy pills mate.. just drop 6 at a time and try the whole fuking box next time (your gob is big and fat enough to take it)
All that hindsight you refer to is Robotrader. In other words, stop just reading his comments on ZH.
Didn't buy into the BAC suggestion, I see- there's still a little time, but probably not much left in it. Could have nabbed the run from $5.50 to $7, though- not a bad ROI for a couple of weeks.
How about this one:
NYSE:RTN
They've got some huge orders for production of new product lines right now, and they look like paradigm shifters.
Zero Hedge is a financial news and information site, not an investment advisor. Making investment decisions based on information published on Zero Hedge, or any internet site for that matter, is more than unwise, it is folly...
Zero Hedge is not a broker-dealer, legal advisor, tax advisor, investment advisor, accounting advisor or children's party clown. (There seems to have been some confusion that these terms are interchangeable). Relying on Zero Hedge in such a capacity will result in regulatory entanglements, civil and criminal actions naming you as a defendant, severe tax liabilities and liens from the tax authority in your jurisdiction and the horror of lax accounting standards.
http://www.zerohedge.com/news/disclaimer
http://www.youtube.com/watch?v=Ls2bz6lCe1c
You forgot Midget Entertainment Specialist. That's why the SEC hasn't come calling yet.
Hey, I just noticed pecent wise I'm down on this post more than NFLX is after-hours. That's gotta be worth something, right?
ROTFL.
Is that so? Perhaps you should log in more often then:
Then again, we are more than aware that momo investors only pick and choose data that fits with their goal seeked version of reality. We assume you covered when Whitney Tilson did as well, yes?
way to drink his milkshake, TD! Belaroos is faced!!
Classic!
nnnnneeexxxtttt!!!
Apologies! Was off line for a while ,but I remember when this stock was mentioned everyday as the TRUE example of HOPIUM . I believe that before its recent slide about 4 weeks ago it was off topic for a while!? Correct me by all mean . I am here to learn .
there aren't many zeroHeads who can say:
"tyler strafed my ass with a burst of seven bullets"
congratulations, irish_link!
Not bad for a six-shooter.
the big money is made by the sittin' and the waitin' – not the thinking...wait until all the factors
are in your favor before making the trade
-Jesse Livermore
Wasn't referring to NFLX. You nailed NFLX when you said Tilson was oh-so very right to be short in the what 200 range?
So, good job. And great job overall providing massive and truly insightful information. I'm just talking about set-ups for future articles, for the just in case scenario, that might just conflict a little for the naive reader with countless articles over the Death of the EUR, for e.g, here:
Forget The NYSE Shorts, And Be Very Afraid Of The Resumption In Bearish EUR Sentiment (And Squeeze)See? This way, you get to be right no matter what? But it's great work. And again great f'ing job in all seriouness! Thank You!
in a post about Netflix you weren't referring to NFLX. oh, ok. Tyler isn't your fucking financial advisor.
Belarus,
You're starting to sound a wee bit like Herman Cain, with the "I didn't mean what I said" routine. Hint: It's not a sucessful strategy. :-).
Hey, stop being critical of a black man you "racist"--oh wait, Cain's a Republican, never mind.
CRUSHED