Wednesday, September 3, 2014

* Netflix (NFLX) - One Chart That Defines the Stock Price... Exactly


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I have written extensively about NFLX... compulsively, really.  My two most relevant posts are included below, with the Sep 2013 article being the most relevant.

Sep 10, 2013
NFLX - Is this the Most Powerful Firm in Entertainment? Some Things I Bet You Didn't Know... But Want to.

Aug 12, 2014
The Volatility Phenomenon is Old, Is it Still Relevant? And Why a Tweet Put Me in a Bad Mood... For No Good Reason.

Conclusion
Today I have a single chart story that defines so well a number of phenomena:

1. NFLX management saved themselves from near obsolescence after booming for so many years (see first post).

2. Sometimes, it's just this easy: Earnings drive stock price.

Net Income (Earnings) vs. Stock Price
NFLX stock price, above all else, simply moves with earnings.  As the stock was booming in the early days, it followed an earnings boom.  As the stock plummeted and faced risk of obsolescence, so did net income.

And finally, back to today, earnings are booming again... and so is the stock price .


What if we could look at 25,000 public companies in every region of the world (including frontier and emerging markets) and every financial, earnings & growth measure against stock price, against a custom peer group, in a time series or point-in-time, with charts that have 'living animated data' that moves, breathes, deletes and appears at your command? 

We can... and now we do.

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The Power of Visual Data is Beyond Exceptional


This is trade analysis, not a recommendation.






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