Does anyone think shares of Netflix (NFLX) are likely to rise over the next few months?
Answer:
I think it is quite likely.
The technology "threat" - including the new Amazon download service announced last night - is overblown, certainly nearterm.
Two national online DVD rental services (Netflix and Blockbuster) can co-exist.
The stock has a reasonable valuation and a high short ratio, while the company continues to demonstrate excellent revenue and earnings growth.
I don't have any money in the stock, but I think there is good chance for a short-term, ownable rally.
What has driven down the price of Netflex is the worry about down load competition. It might be overblown. However, it is still weak technically. You may wish to watch it for better technicals before go jumping in.
The other consideration is the time of the year. Sept and Oct have a history of bringing unpleasant surprised to investors and the market in general has not been overally bullish lately.
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