A reader responds to the column: “HEARD ON THE STREET: Netflix Remembers to Rewind,” which ran Monday at 2:31 p.m. EDT:
As a Nexflix subscriber for three years now, and a novice stock trader, I see that the market seems to forget that of the 25 million domestic subscribers already, 99% of them do not care about earnings, stock price of Netflix, or what analysts say about the company.
Subscribers DO NOT KNOW ANYTHING about the “company”.
The ONLY thing 99% of the subscribers saw was;
1) a price increase
2) that they would have two websites to visit to order streaming (Quickster) or DVDs (Netflix)
3) two credit charge charges from both companies
4) and of course, a choice if they wanted both or just one.
That is, subscribers have no clue that some “expert” downgraded the stock.
The market seems to also forget that a lot of consumers have Blu Ray and high-definition TVs and surround sound systems. Continue reading…