Tag Archives: investments

Time To Invest: Netflix Loses $2.3 Billion in Market Cap

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Last night the Netflix third quarter earnings were released which, in and of themselves weren’t all that bad, but investors were spooked by a letter included in the report, from CEO Reed Hastings and CFO David Wells.

The letter talks about the recent pricing changes debacle, and how it would negatively impact fourth quarter, and potentially first quarter earnings.

The market then did what it often does- overreacts to the information, causing a 37% share price drop, which translates into $2.3 billion in market cap.

Streaming video is clearly the the future of movies and television- so this drop is a great opportunity for investors to save ~$40/share on a company that’s still killing it in the market place- and by the look of volume graphs today, there’s plenty of people that agree.

RIM isn’t going to make it.

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Research in Motion (the company behind the BlackBerry smart phones), released their quarterly updates yesterday, causing their shares to tank- dropping 21% on the TSE. Apparently this was mostly due to product delays and the announcement of layoffs.

The thing I find funny, is the curious 2M drop in volume earlier in the day:

Cough… (insider trading)… cough cough..

Wait until it gets to $20/share and buy! They’ll be Microsoft shares soon enough.

Almost Time to Invest

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On a related note, BP’s current share price of 42.95 might mean it’s almost time to pickup some of the company on the cheap.

The company has had a five year low of 35.15/share- it’ll be interesting to see how it opens on Tuesday given the failure of the Top Kill solution– I’d say depending on the feasibility of the next idea, if it gets into the low 30’s, it’s probably a good buy.

With the extra money, you can throw a really nice funeral for that part of you that dies.