Last night, Netflix CEO Reed Hastings faced Wall Street with third quarter earnings which weren’t terrible in and of themselves. But he spooked investors with projected losses going into next year. The growth investors who remained in the stock started fleeing in after-hours trading, and this morning shares opened at $74.90, down 37 percent from a close of $119 yesterday.
That $44 drop translates into $2.3 billion worth of Netflix market cap getting wiped out in a single night. Netflix’s current market cap is just shy of $4 billion, down from more than $16 billion at its peak last July. LinkedIn, with a market cap of $8,6 billion, is now worth twice as much as Netflix.
Did Wall Street overreact? If you believe that streaming video is the future of movies and TV, this could be a buying opportunity.
Just bought some $NFLX after hours. I'd be less bullish if they weren't already so far ahead of most of the content world's thinking.—
Chris Sacca (@sacca) October 24, 2011
Netflix is the world’s leading Internet television network with more than 33 million members in 40 countries enjoying more than one billion hours of TV shows and movies per month, including Netflix original series. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments. Learn more about how Netflix (NASDAQ:NFLX) is pioneering Internet television at...