Netflix Inc (NFLX)

[Cassius Clay]

This has become tremendously undervalued. Netflix splitting is the right decision in the long run. Some truths the heavily grim media don't seem to be interested in:

*Qwikster will now offer video games. This service will be operated under the same basic principles as the former Netflix DVD service, which means no late fees. This is a massive expansion of service for Netflix(now Qwikster), going after indirect competitors like Gamefly and a previously untapped market.

*Splitting income allows for independent expansion. The future of Netflix is, quite obviously, not in DVD, but in streaming media. Netflix is the single largest source of North American web traffic. Streaming has become what was formerly Netflix's primary service as far as users are concerned. Subscription fees for Netflix streaming can be used to expand the media library, one of the most common complaints about Netflix streaming.

The company is simply undervalued here as the reaction to the news has been frantic and exaggerated. Could NFLX continue to tank for days to come? Absolutely it could, but I can almost guarantee you will see this touch $300 PPS again within 6 months.