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Netflix, Inc. (NASDAQ NM: NFLX) Last Update: 5:58:55 PM ET Oct 14, 2004
Netflix tops profit, but shares take hit after hours
By Bambi Francisco, CBS.MarketWatch.com
DVD rental firm tops estimates but offered no outlook
SAN FRANCISCO (CBS.MW) -- Shares of Netflix tumbled 37 percent after hours following its earnings report for the third quarter, in which it said revenue nearly doubled but then announced that it's cutting prices and expects that it will break even next year.
The DVD rental firm's (NFLX) stock ended the regular session up 8 cents at $17.43, but was down $6.43 to $11 after the bell.
Posts: 1872 | From: right here | Registered: Apr 2004
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posted
Netflix is down because it announced it will merely break even next year. Our earnings started at zero. We can only go up. We're some of the "increasing competition."
"Netflix said third-quarter earnings rose sharply on rapid subscriber growth and lower costs, but noted that it expects increasing competition in the coming year."
"The company attributed the gain in part to lower-than-expected shipping costs after subscribers in the quarter rented fewer movies than expected."
"but then announced that it's cutting prices and expects that it will break even next year."
But, what do I know?
Posts: 1872 | From: right here | Registered: Apr 2004
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quote:Originally posted by WinsumLosesum: Netflix is down because it announced it will merely break even next year. Our earnings started at zero. We can only go up. We're some of the "increasing competition."
"Netflix said third-quarter earnings rose sharply on rapid subscriber growth and lower costs, but noted that [b]it expects increasing competition in the coming year."
"The company attributed the gain in part to lower-than-expected shipping costs after subscribers in the quarter rented fewer movies than expected."
"but then announced that it's cutting prices and expects that it will break even next year."
But, what do I know?[/B]
Good points! Hope we post good sub numbers. That alone will help this stock right now.
posted
I worry about there new price though. Not that we cant match but we still have the games to help though. You have to remember that earlier this year we heard this from Netflix. It was the reason they raised price. They are too big. They needed to streamline then and get rid of some unprofitable customers.
Ric
quote:Originally posted by whizknock: Good points! Hope we post good sub numbers. That alone will help this stock right now.
Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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quote:Originally posted by Ric: I worry about there new price though. Not that we cant match but we still have the games to help though. You have to remember that earlier this year we heard this from Netflix. It was the reason they raised price. They are too big. They needed to streamline then and get rid of some unprofitable customers.
Ric
What kind of impact do you think this will have on gzfx pps? I can't imagine it will affect it all that much. Personally, I did not buy GZFX because it was offering a similar service to netflix at 3 dollars cheaper. Although this was somewhat of a selling point, the main reason was the video game and movie combination. I also like the fact that one can purchase movies through the site. The biggest problem I see is that wal-mart, block buster, and now Amazon are all in the market. This may lead to some problems. However, it seems we (GZFX) are the unique ones of this group as we offer both gamez and flix!!!!!
posted
I do think games is still the key. We own that niche when we become more known. Amazon I think hurts more then any other just by the fact they sale videos. But still think we have that little extra that will help us from being hurt too much.
quote:Originally posted by glfpimp: What kind of impact do you think this will have on gzfx pps? I can't imagine it will affect it all that much. Personally, I did not buy GZFX because it was offering a similar service to netflix at 3 dollars cheaper. Although this was somewhat of a selling point, the main reason was the video game and movie combination. I also like the fact that one can purchase movies through the site. The biggest problem I see is that wal-mart, block buster, and now Amazon are all in the market. This may lead to some problems. However, it seems we (GZFX) are the unique ones of this group as we offer both gamez and flix!!!!!
Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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quote:Originally posted by whizknock: The Super Bowel will be fun!
Whiz, is that a typo, or are you giving us WAY more information than we may be comfortable with?
Posts: 1872 | From: right here | Registered: Apr 2004
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Will we see .05 anytime soon? This company has more potential and should not be under .05 in my opinion thats why i bought in
Posts: 6266 | Registered: Jun 2004
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I bought shares of GZFX. I was going to buy a BIG position, thinking there was alot of potential in it. I decided to try the service first and I've had it for 3 weeks now and have had a grand total of 3 rentals. I had 2 at one time and waited to see if they would send a third, they never did. I sent those 2 back and they received them and they still haven't sent anymore. I have 9 movies selected, in my Que, varying from new releases to old classics that shouldn't be in big demand. I sent them an email Thursday telling them I was waiting on movies and they've yet to reply. So I guess I won't be buying anymore of their stock, I don't see much future in it. If they don't send me movies soon I'll deny the charges on my cc, as well.
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Just amazes me that a new member with no profile and first post ever come in here and states something that he can only prove to save us all. If you have read this board you would know we didn't need saving. We know it's a new company with only 2 distribution centers. It’s growing and having growing pains. By the way the link is to a new pent. 4 computer that can handle multimedia better not as you suggested of a movie download. By the way is not the computer that’s slowing the progress of downloaded movies. It’s the download rate in which broadband still takes to much time and software problems of illegal copies. But there are sites out there trying to start this business. You would be more credible if you used them.
BUT IF you can't even fill a profile out, I tired of you trash coming in here out of nowhere myself.
Ric
[This message has been edited by Ric (edited October 16, 2004).]
Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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I've been billed for $74 for 3 movie rentals(so far) and I'm the trash? Even at 4 rentals a month its not a good deal or good service. If you would read the link I gave you, you would see that intel is developing the technology to download movies. They were hoping to have it out this holiday season but I'm not so sure about that. As far as downloading a movie, it doesn't take that long to download a movie, a heck of a lot faster than waiting on the mail for a movie that hasn't even been sent.
I saw where GZFX was up to .17 a few months ago and thought it might go back up there and .035 was a deal so I bought some. Reading this thread made me consider buying alot more, about what you have, 100k or better(possibly alot more). Not after having their service would I buy more. Do you even have their service? Short term, they might go up some but I wouldn't hold it long term.
As far as the insults, they are uncalled for. You don't talk to people like that in person, I hope. I know you wouldn't say it to me if we were within normal speaking range, maybe once. I'm getting f'd and I'm the bad guy?
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Sorry about the harsh words. You need to make a profile to have credit for one. There are a lot of basher who come in just to bash a stock on any board. Usely a new member, making statement that can't be proved. Thats all. If you have read then you would know that there are some speed issues still, but as I said this is only a 6 month old company. It took Netflix 2 years to handle these exact issues. Hopefully we will do it quicker but you can't expect it over night. If your having trouble, I am sorry but I don't know that. If your having trouble you should quit if you feel like you need to but I still think the stock will do better in the long run once these issues ar settled. Its just no one knows you. Not saying it doesn't happen, I know it does but how do we know your not coming in here just to bash when you won't even fill out information. Also the link you gave just made me wonder about your attentions. Sorry if I was wrong.
Ric
[This message has been edited by Ric (edited October 17, 2004).]
Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
Yeah, I know the bashers are some aggrevating SOBs. I've seen them on other boards, where I held a position, they actually scare some people into selling their shares cheap. They disappear when the stock goes up or suddenly go long. I just have a problem putting money in a service oriented business when the service just isn't there. I'm not too happy about paying the sub when I'm sitting here with no movies. At first I was thinking it would be great, once it got started, order the movies (watch/send back) and by the next weekend there would be more movies to watch. I thought it would be great to advertise showing the family getting movies while the kids go play the games that just came in the mail. GREAT IDEA!
I noticed the shipping was costing them .60 each way. I figured I'd get 3 movies a week, that would cost them $14.40 a month on a $18.50 sub. I started wondering how the heck they would make any money at that rate. I noticed NFLX had more profit this quarter because, reportedly, subs were increasing but people were getting the movies less frequently. That saves them big $$ in shipping. So it seemed like a good deal, they got a CEO formally from AdSouth and I figured that would help alot. Good media and cheapest mail-order movie rentals, lots of potential. I thought about buying 100k shares and maybe even as many as 1mil(it crossed my mind) because surely something this good will go to $1ps. Well, NFLX is cheaper now and with the new technology, just around the corner, I've changed my mind. NFLX has been out awhile and Circuit City was pushing them years ago and they really had no competition. So they could afford the time it took to smooth things out. I don't think NFLX will be around too much longer as technology advances.
I'll tell you alittle something about me. I grew up in the family movie rental business, we had 3 at one time. Big commercial business, like Blockbuster, hurt our business (so we sold them). I think Netflicks and pay-per-view took a chunk of their business and the new technology will come to pass and there will be no need to get movies elsewhere as people can have them streaming into their homes. It may take awhile to perfect and catch on, so there is time to make money for now, imo. It took awhile for VHS to catch on then everyone had them. Few years ago DVDs came out and only those that could afford a $400+ player had them(I bought one for my girlfriend for X-Mas) and now everyone has them, they can be had for $25. Time moves on, don't fight it, seek the oppurtunities in it.
Here are my picks. I recently bought some INTC, its near its low and had some bad luck but it will go back up. I bought some GNLB on their bad news and am just waiting for it to go back up. Waiting for SIRI to come back down alittle, big future for Satelitte radio.
Anyhow, I just thought I'd try to help some fellow stockholders. I didn't figure I needed to fill out the profile as I doubt I'll post much on here. I will read it and get some ideas, then do the DD.
This is all just my opinion. I realize you have been holding alot of this stock for quite some time and apparently have become attached to it. Hold it, I'm sure it will go up some, hopefully. Just know when to get out or just disregard my input altogether.
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I agree with a lot of what you say. I think our biggest hurdle is Amozon, if Amazon stays out a little while longer it will help. I read a article on online movies and wish I still had the link. They have some down falls right now. Not that it can't be over come but its still too far off to hurt right away. Hopefully at least till we can make some money.
Online pitfalls:
1) Movie industry is scared of it because of copy issues Sort of like whats going on with the MP3s being file shared.
2)Download speeds. People with modems might as well not even thnk about it. But even with cable (Mine a 3gig) it still takes a while to download not that it would bother people to wait 2 hours but still not fast.
3) storage space. How many movies can you download till your hard drive is full. Not many.
4) Quality - with the new computer that was mentioned on the web site it might not be bad but still computers get bogge down, lock up and crash.
5) Do you want to watch a movie on your computer. You will need to buy a card to hook to your TV at minimum (extra expense) then you will have to either have your computer near your TV or long cords, so on.
I can't remember all the downfall. They listed more but that was some of the main pitfalls right now. Not that technology won't catch up later but people are slow to change too. I know people with VCR's only still.
Well, I think we have a little time before we have to worry about that myself. Hopefully I am rich before then, lol.
Excuse me if letters are missing, wireless keyboard batteries getting weak.
Ric
[This message has been edited by Ric (edited October 17, 2004).]
Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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From what I've read, its more of an entertainment center than a pc. Its something you put in your entertainment center and run the wires, similar to a cable box. We'll see what happens, good luck. Oh, I'll let you know if they ever decide to ship me anymore movies.LOL
Posts: 19 | Registered: Oct 2004
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quote:Originally posted by Ric: 1) Movie industry is scared of it because of copy issues Sort of like whats going on with the MP3s being file shared.
That's why I'm patiently holding on to my USVO.
"We hold the patent for Store-and-Forward Video-on-Demand (#5,130,792), filed in 1990 and issued by the United States Patent and Trademark Office on July 14, 1992. It has been cited by at least 145 subsequent patents. We hold similar patents in England, France, Spain, Italy, Germany, Canada, and Japan. We anticipate actively engaging in licensing this patent.
Our Store and Forward Video-on-Demand ("VoD") intellectual property potentially reaches across the VoD market. Our patented technique covers the transmission of video content over networks faster than "real time." VoD is the mechanism by which the delivery of compressed video is managed and, together with compression technology, facilitates the delivery of video to an end user in a timely and interactive fashion." http://www.usvo.com
Posts: 1872 | From: right here | Registered: Apr 2004
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Ric, Whizknock, or anyone else that posts for GZFX, have any of you seen any feedback on the free DVD player? I haven't seen any comments here. Just curious.
Posts: 603 | From: Plymouth, MN | Registered: Jun 2004
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quote:Originally posted by MTPromises: Ric, Whizknock, or anyone else that posts for GZFX, have any of you seen any feedback on the free DVD player? I haven't seen any comments here. Just curious.
Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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quote:Originally posted by ScottyTooHottie: You don't get the dvd player until after the four months of subscription has taken place, that is why you haven't heard any feedback.
I'm not so sure about that. If a person pays their 4 months up front they ought to get that DVD player with their first set of movies. Furthermore if I'm Gameznflix I want to send it out as soon as possible. Then if someone says they want to cancel they loose their deposit.
Aside from all that I continue to accumulate at these levels because I believe this company is here for the long haul. I might take some profits at .50 but as usual with a penny investment I will hold a nice size core position.
quote:Originally posted by whizknock: I'm not so sure about that. If a person pays their 4 months up front they ought to get that DVD player with their first set of movies.
Well, I'm sure about it. The email they sent me said I'd get a dvd player at the end of the four months. Actually I'll post the email here:
"WELCOME *******,
Thank you for signing up for your membership to GameznFlix, where you can enjoy more movies, more games, and more fun. Upon validation of your credit card your rental's will begin shipping to you.
You have been registered to win a chance to appear in our upcoming Super Bowl TV ad. And, at the end of your four-month subscription, we will be mailing you a FREE DVD player.
Thank you, GameznFlix support@gameznflix.com"
I thought it would make more sense giving the dvd player away after the cc was confirmed and billed too. It might get people who didn't already have a player the chance to get one and would help get subs. If you don't have a player then why would you need a sub? If they gave you one then it might motivate you to get the sub. It might also generate business from people that couldn't afford a dvd player, kill two birds with one stone. Great gift idea. Oh Well. Good Luck.
[This message has been edited by Harleyman (edited October 18, 2004).]
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