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It was a freaky-bad miss. I wouldn't buy it here. I was thinking of going short a few minutes ago, but it seems to be clawing its way back from a low of 343 to 346.
I am guessing it will drop during the conference call - because the outlook has been lowered as well.
The only place they beat was EPS - BUT a lot of that was international and it all could be from a stronger dollar.
The only way it will go up is if they announce some of the price changes I mentioned a few post back.
yes, but it is costing them a bomb to produce all that content, they have spending projections for $20 billion and current debt of $5 billion. What happens when they run out of money for new content which is what will happen when cheap capital becomes scarce in a recession. Also, they may lose subscribers during a recession as extras like Netflix could get cut or accounts consolidated due to increased sharing.
Easy to make money during a strong economy, the real test is upcoming.
They are truly causing a golden era of content development. In the upcoming year Netflix will spend more on content development than the entire US Theater Box Office take.
Effectively what they've done is launched a price war in content distribution. Company has great moat and positioning, and has done so at the cost of making an unprecedented amount of content for much less revenue.
The big question is whether they'll be able to fine tune it in a manner that will consistently be possible. Cutback on development content for all and people will start to drop them, go elsewhere.
They've bought a place at the table, but at some point they're going to need to show a profit for their seat. That's a tough act to pull at $10 a month.
Be amazing if it gets to 400 by the end of the day.
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But I'm going to watch it very carefully. 
