Netflix (NFLX) and the Streaming Wars Message Board

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Technology Stocks : Netflix (NFLX) and the Streaming Wars

NFLX 103.22

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3:59 PM EST

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To: Brumar89 who wrote (31)	6/13/2003 11:48:02 PM
From: Glenn Petersen	Read Replies (2) of 2280

$15 was Chris Helman's target in the most recent issue of Forbes. siliconinvestor.com Makers & Breakers Netflix Faces Stiff Competition Christopher Helman, 06.10.03, 9:44 AM ET Every month a million customers pay Netflix $20 to rent as many DVDs as they can watch. The discs come by mail with a postage-paid envelope for returns. In 2002 Netflix doubled sales to $153 million and cut its losses by 43% to $22 million; 2003's first quarter also had encouraging numbers. Since last fall its stock has quintupled. Alas, it has competition: Blockbuster (nyse: BBI - news - people ) and Wal-Mart Stores (nyse: WMT - news - people ), now rolling out their own versions. It costs Netflix (nasdaq: NFLX - news - people ) $32 to attract a customer. Wal-Mart and Blockbuster can promote their services in their own stores, largely for free. Shares go for a too-generous 90 times the consensus forecast earnings for 2003. This is a heavily shorted stock, and a short squeeze is a risk. If you have the nerve, short what shares you can find; cover at $15.

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