Netflix seems to go up...and down...and up...and down...yet always return to the $99-$101 level, no matter what. So if one owns it at that price, just sell it for a profit when it goes up enough (and it will). Or hold it for long term, and sell it for a much larger profit (unless something unforeseen happens to cause it to tank...like BRK.B and other stocks...it happens).
There seems to be an overreaction to earnings reports, one way or the other. To me, the fact that a co. missed an expectation doesn't mean much long term, unless there are other factors involved. The most useful thing about earnings reports is that you know the investing public is going to go bananas either up or down.
If you're going to invest in the stock market, you're going to be holding Apple, Google, Netflix, Amazon. At any point in time, one can point to some metric that says the stock shouldn't be selling for what investors say it's worth, and yet...they continue to rise. It's clear the investors have spoken. It was this way in the earlier days of Google, as well, when Yahoo and Microsoft had better metrics. Fast forward, and who doesn't wish he had bought Google in the earlier days? I thnk when you're talking best of breed, and the first, and there's a business plan by a company with a history of success, the raw metrics at a point in time doesn't tell the whole story. They could screw up. But even with the "right" metrics, they could screw up. |
