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Netflix Hit 52-Week High Yesterday -- Stock a Buy?

Don't you just wish you had bought Netflix, Inc. (NFLX) about twenty points ago? The question doesn't even need to be asked. But what should an investor do now? After all, shares of the online rental service hit a fresh 52-week high on Tuesday, rising all the way up to a price of $75.65 before settling down a bit to close at a very respectable $75.06.

New 52-week highs are tricky beasts. On the one hand, they signal strength, indicate the elimination of weak hands, attract momentum players, etc. On the other hand, a 52-week high might mean that the stock has ventured into overbought territory.

Continue reading Netflix Hit 52-Week High Yesterday -- Stock a Buy?

Netflix moves away from mail delviery

One of the main arguments made by Netflix (NASDAQ: NFLX) -- my views tend to align with the company's -- is that its business model will be obsolete in a few years: maybe 5, maybe 10, but definitely gone at some point.

The company's only hope of providing long-term value is to use its brand and customer relationships to become a first-mover in the digital delivery of movies. The company is certainly pouring its resources into that battle but, as The Wall Street Journal recently noted, "the sheer cost of acquiring online-viewing content could crush Netflix's profit margins, unless the company sharply raises its subscription price, thereby reducing a key advantage over rivals."

Continue reading Netflix moves away from mail delviery

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Last updated: May 28, 2012: 08:04 PM

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