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Re: L1ving post# 2126

Thursday, 07/25/2013 11:41:17 AM

Thursday, July 25, 2013 11:41:17 AM

Post# of 9323
Business as usual indeed.

Netflix is a household name so people invest long because they know the brand. They don't care about earnings as long as they see Netflix on TV. Must be doing good if they have coin to burn on TV commercials, right?

Ditto for Amazon. People know the name and do not care that earnings have been dropping for 5 years straight. And yet the stock pushed over $300 last week.

It makes no sense whatsoever. Analysts that make predictions on these stocks might as well flip a coin. So if Netflix went to $500, split and went back to $500 with a PE of 3,000 I wouldn't be shocked. It's a popularity contest and Netflix is winning.
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