November 10, 2010

Netflix Is Still A Buy


After the huge run that Netflix(NFLX) has had lately, this stock is still a buy. Some may be put-off by the steep price tag and wonder if the stock is overvalued. The stock is expected to make $3 a share this year which would put the stock trading at about 50 times earnings. While this is high, the company is expected to make $5.25 a share in 2012. Which would place the stock at around 30 times earnings. Plus when you consider the recent articles that show Netflix streaming is dominating internet traffic and their subscriber base has been growing every quarter.

Either way, if you have a Netflix account and have streamed movies instantly to your computer, you know why you have to own this stock. It has enormous growth potential and is loved by its customer base. What more could you ask for?

The author of this post owns no position in Netflix(NFLX) at the time of this post.

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