It looks like Netflix CEO Reed Hastings has won, at least in the near term, his argument with hedge fund manager Whitney Tilson over the company’s prospects. Tilson has covered his well-publicized short, as this stock continues to climb and climb.
Chart: Google Finance, 9/1/10 through 2/13/11
Cramer’s jumped onboard with a rather bizarre comparison to recent valuations for private social media companies like Facebook and Linked In. Not clear what’s social media about Netflix or why a Facebook IPO would impact it directly, but Howard Lindzon is right – it’s classic Cramer theater as he argues NFLX could double:
Eddy Elfenbein today acknowledges that he was wrong on this stock a year ago, but still…
We’re at the point where people are only buying Netflix because they think they can dump the shares off at a higher price to someone else. This is also known as “the Greater Fool Theory.” The problem isn’t that it doesn’t work. It does work, just for everyone else.
Here are the Covestor models that currently hold Netflix – click through for more information about the model and the manager’s investment strategy:
- Fundamental Growth from Sparrow Capital – recent performance summary from Covestor:
- Midcap Fundamentals from John Ballard – recent performance summary from Covestor:
- Smallcap Growth from AlphaMark Advisors – recent performance summary from Covestor:
- Prededent Based from John Ward – recent performance summary from Covestor:
- Deep Fundamental Analysis from Tab Buford – recent performance summary from Covestor:
- Bottom Up Analysis from Sean Hannon – recent performance summary from Covestor:
- Technical Swing from Michael Arold – recent performance summary from Covestor:
Sources:
“What social media IPOs mean for Netflix” – Jim Cramer on CNBC, 1/31/11 http://bit.ly/fvGd8W
“The art of Jim Cramer” – Howard Lindzon, 2/1/11 http://howardlindzon.com/the-art-of-jim-cramer/
“Netflix is still way too expensive” – Eddy Elfenbein, crossingwallstreet.com 2/1/11 http://bit.ly/eI8Z8h
