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If Netflix Inc. (NFLX) Blows Up In Europe, It Will Shatter Competition Into Dust

Netflix, Inc. (NASDAQ:NFLX) has slid some 5.37% during the last 5 days, but the shares are up approximately 1.3% in pre-market. CNBC’s interview with Richard Greenfield, BTIG, revealed his optimistic view for the company’s future. He predicts a growth in value of almost 30%, up to $600 per share for Netflix, Inc. (NASDAQ:NFLX) and the fact that the company will still be pursuing an expansionary growth until the market is saturated with its content.

Netflix, Inc. (NASDAQ:NFLX)

“You have to believe in international, first of all. If you don’t believe in the international story that they can get to 100 million subscribers in 2017, anyone watching this program should not own the stock. If you don’t believe that there’s going to be robust success in France, Germany and overseas, don’t own the stock here,” said Richard Greenfield.

Netflix, Inc. (NASDAQ:NFLX) has little competition in the domestic market and abroad, so its business is secure from potential losses. Seemingly, all that’s left for Reed Hastings to do is to manage the company’s activities in a manner that will assure future profitability.

“Let’s be very clear, if Netflix are showing significant international profitability they’ve probably failed because it probably means they haven’t found another market to launch in. I think Hastings’ strategy is to keep finding that next major market and launching there,” stated Richard Greenfield.

In essence, Netflix, Inc. (NASDAQ:NFLX) is just looking forward a broader market coverage in terms of demographics and content, with cold-blooded indifference with respect to profits for the time being. Investors keep faith in the platform because they expect the actual profits to flow into their pockets only after there’s no more room on the market to grow into. It seems very promising, but the company’s 131.83 price over earnings points to the fact that investors pay more than enough for Netflix, Inc. (NASDAQ:NFLX)’s future and if something goes unexpectedly wrong there’s too much to lose. So it will be best to expect tomorrow’s earnings call before rushing into the stock.

Disclosure: none

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