Netflix has been growing profitably and comfortably since its founding in 1997. I don't believe they have ever reported negative earnings and their business model is very simple to understand. They rent movies over the internet which caters quite nicely to the vastly growing idea (especially with younger generations) of living on the internet.
Netflix Total Cash: $254M
Netflix Total Debt: $38M
As a side note, I always ignore bank Upgrade/Downgrades since I don't really believe they know anything except how to confuse you with fancy formulas and over-analyzed finance models. It's easy to jump on the bandwagon (Oct 23, 2009 after Netflix earnings) once a stock rises in price as Oppenheimer has. It was only back in July 2009 when Oppenheimer downgraded Netflix (NASDAQ: NFLX).
As Katy Perry sings it: Shut-up and put your money where your mouth is Oppenheimer. I did back in my August portfolio.
Posts
http://www.fool.com/investing/small-cap/2009/12/03/these-stocks-can-always-outperform.aspx
ReplyDeleteArticle on Netflix versus Blockbuster
"Although its IPO went for $241 million in 2002, this David is now slaying the Goliath that was Blockbuster, and its market cap now sits above $3 billion. And this is just one instance in which the agility that comes with being small has helped a tiny company overtake larger competitors."