Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Someone is Finally Making Money Shorting Netflix (NFLX)

Companies / Company Chart Analysis Mar 08, 2011 - 03:57 PM GMT

By: Trader_Mark

Companies

Best Financial Markets Analysis ArticleAfter torching short sellers for seemingly years on end, it might be ironic that Netflix (NFLX) topped within days of the date (Feb 10th) famed fund manager Whitney Tilson finally threw in the towel on his unsuccesful short.  The stock peaked 4 days later.


This morning's news that Facebook is moving into movie streaming has caused a ruckus on a stock that was already looking as if it lost momentum.  Netflix, flirting with its 50 day moving average, has clearly broken down now and the first "gap" in the chart at mid $180s looks to be a formality.  Of course this stock has been on such a rip roaring ride there is more than 1 gap - the next interesting level would be $150s from late October.  Put another way - there is a lot of meat on those bones and once a 'momo stock' loses momentum - watch out.  Whitney, reconsider!? ;)   You can short versus that 50 day moving average near $205 and give it another whirl.

Some comments on this latest news event from Goldman Sachs via Barron's.
  • Goldman Sachs’s Ingrid Chung today writes that Netflix (NFLX) could in time be threatened by Facebook’s role in movie downloads, citing the announcement today by Time Warner’s (TWX) Warner Bros. studio that it will let Facebook users pay for movie purchases or rentals with “credits” on Facebook.
  • Warner actually touted the Facebook offer as making it the first studio to sell and rent movies “directly.”  Chung thinks this is no immediate threat to Netflix, given that this is effectively “pay per view,” more like video-on-demand than Netflix’s streaming subscription.
  • But, she adds, Facebook has more than 500 million active users, half of whom are online on any given day, versus just 20 million subscribers at Netflix. And the “wisdom of friends” can drive viewership on Facebook. Plus, the gap Facebook has in the livingroom — i.e., devices — may be fixed over time with new Facebook-enabled gadgets. All of which means, “Facebook could become a credible threat.”
More on this morning's announcement here.
  • Warner Bros is making some of its films available on Facebook, opening up a new revenue source for the Internet social network and signaling new competition for online entertainment companies.
  • Consumers can pay for the movies using Facebook Credits, a virtual currency so far used mainly in social games on the site, according to Warner Bros.  Facebook, which makes money mostly through online advertising, takes a 30 percent cut of the revenue from sales by third parties on the website using Credits
  • Rentals cost 30 Facebook Credits, or $3, for 48 hours, and viewers can pause and restart a movie whenever they log back in.
No position

By Trader Mark

http://www.fundmymutualfund.com

Mark is a self taught private investor who operates the website Fund My Mutual Fund (http://www.fundmymutualfund.com); a daily mix of market, economic, and stock specific commentary.

See our story as told in Barron's Magazine [A New Kind of Fund Manager] (July 28, 2008)

© 2011 Copyright Fund My Mutual Fund - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in