NFLX (Netflix) is going for even more subscribers! Other companies likely will go after NFLX! The Street endorses NFLX return from the ashes!
Awhile back, we spewed on this site about a marriage of Apple (AAPL) and NFLX. If Apple had taken our advice, AAPL's stock today likely would be above 1,000. Apple would own the media world! Instead AAPL stock is declining wholeheartedly. Meanwhile the Street has a new found love for NFLX.
Five months ago, NFLX had fallen to a low of 52.81. Carl Icahn came along the scene smelling a under-valued company buying 10% of NFLX. Today Icahn has doubled his money. Icahn wants NFLX to be taken over by a cash-rich company. There aren't too many of those around with the resources to buy NFLX. Of course AAPL has the cash but not the will. MSFT and Google are more likely candidates. NFLX on the meantime plans to grow by extending it's services in the international arena and coming our with it's own content. Already approx. 33 million are on NFLX. NFLX's ceo is thinking about getting it up to 60-80 million.
This comes to an interesting analogy. Is Apple (aapl) where NFLX was 5 months ago? Apple's stock is remarkedly undervalued! More likely than not, AAPL will hit bottom sometime in February. Expect some positive developments thereafter and be ready to enter APPL's return to market dominance! It should be interesting.
Be ready! The market is being flooded with new money! Icahn isn't going to stop his push for NFLX to be acquired by another company. Another company buying out NFLX could push NFLX's stock to 300 !!!! Remember NFLX was at 300 before the CEO got greedy and raised subscription fees. This mistake wouldn't happen again. AAPL won't sit idle if it sees GOOG or MSFT making a run on NFLX. Expect NFLX stock to sky rocket! NFLX's posion pill won't stop the action. Remember there's no quit in AAPL, the same can be said for GOOG.
The war continues for dominance among AMZN, GOOG, and APPL. In the meantime, players such as Icahn will make it happen!
Disclosure: Current position in NFLX. Reference, see link below