Jim Cramer Recommended Netflix at $130 (After the Big Drop)
The bozo recommended Netflix at $1340 with a target of $150. Netflix announced earnings today.
SAN FRANCISCO (AP) — Netflix jolted its already shell-shocked shareholders with a third-quarter financial report that portrayed a company in crisis.
Netflix’s blooper reel, released Monday, included an even larger customer exodus than the company had foreseen after announcing an unpopular price increase in July. What’s worse, the report contained a forecast calling for more defections from the largest U.S. video subscription service.
The backlash will deprive Netflix Inc. of some the revenue that management had been counting on to finance the company’s expansion plans while it pays higher fees for Internet video streaming rights. The result: Netflix expects to post losses next year when it starts selling its steaming service in Britain and Ireland. The company didn’t offer further specifics.
None of the developments pleased Wall Street as Netflix lost more than a quarter of its value after the bad news came out. If that sharp decline holds in Tuesday’s trading, it will mark the first time Netflix’s stock price has fallen below $100 in nearly 14 months.
Netflix shares shed $31.19, or more than 26 percent, to $87.35 in Monday’s extended trading.
It’s the latest setback for a former stock market darling whose shares topped $300 just 4 1/2 months ago. Netflix’s market value had already plunged by about 60 percent, or nearly $9 billion, before Monday’s late sell-off.
If you listened to the buffoon a few days ago and acted on his advice, I feel sorry for you. The stock is trading at $87 after the earnings were reported today.
In case you missed it, here is a priceless revelation. This one liner from the WSJ live blog on NFLX earnings call says it all:
6:31 pm : What? Anyone There?
There’s a deafening silence as Netflix execs solicit further questions. Anybody?
Only one participant asked a question. This stock could drop to teens in no time! I believe the next mo-mo to blow up is Priceline. I name my own price: $50.
In case you missed this in Feb, an analyst called out NFLX on their accounting “games.” I believe it is going to catchup with them now. The stock can see 20s, soon. Very soon.