Netflix: Best Performing S&P Stock This Year

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Dec. 31 (Bloomberg) -- Albert Fried & Co. Analyst Richard Tullo discusses his outlook for Netflix on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Story and from a business perspective that is where they will continue to go in 2014. let's go back to the stock.

You said, we had it wrong on netflix and you actually withdrew your coverage of the stock.

It was kind of.

Somebody in my position should not apologize because when i am wrong, that is not a misery that is shared by me, that is shared by the investors for stop -- by the investors.

For me to apologize is worthless.

Your withdrawing coverage.

You say the fundamentals are not there for now question mark it is horrible.

I don't understand why.

What they produce is nothing short of phenomenal.


For less than the price of one movie ticket, you can watch as many movies as you want for months.

I just want to cancel hbo, showtime, and cinemax just because i have netflix on there and it takes care of everything i want to watch.

Hbo is allowed to sell you a la carte, they would do that all day and all night.

The cable companies do not want them to do that.

It'll have the same collection.

They have access to four out of the top five movie catalogs in the world.

Some of the most popular shows ever that have been on cable have been hbo shows.

Not only that, they produce a lot of content for others.

They are not allowed to use the netflix model?

As of this moment, they're currently in negotiations with all of the cable companies and i would not be surprised if at some point this year you would see hbo go coupled with a broadband subscription.

People have been talking about come petition for netflix for a while.

There are other folks in the market.

You already have some of the players in the market.

You have hulu, you have some of the other online streaming players.

You have amazon in the market.

A lot of people that have amazon prime don't really use the streaming service.

They use it for the free stripping -- the free shipping.

Wait a second, they have 30 million u.s. domestic am a those are the ones they make margin on and they have 10 million foreign subscribers that they lose money on.

They have 30 million subscribers and they also have a dvd business that is technologically obsolescent and generates roughly half of their ebitda.

You are losing a business that is producing as much earnings as three or four domestic streaming subscribers and maybe five or 10 international.

You are out there working on "bloomberg west" and you do a better job of covering the media than anyone i've seen.

I'm looking at a p/e ratio of like 365 which is insane.

Does not make sense when you get to that point.

What did the bulls say?

I think you have seen over the past couple of years the stories of platforms.

Whether it is amazon or netflix or pandora, three examples of companies that have incredibly hot stocks over the longer term.

With financials that don't make as much sense.

People are looking at the long game and saying that people will choose specific platforms and maybe one is based on music and one is based on entertainment.

The strongest will survive.

They will have more leverage ultimately even if the financials don't make sense in the short term.

When it comes to here in hollywood what is actually being spent on these original shows.

Besides what is getting outspent on the traditional tv players, it is more of an amazon and netflix story.

Hulu does not spend as much per show as amazon and netflix are willing to spend.

The biggest challenge it could be amazon if they were to choose to really turn this into something more than just sort of an add-on feature to amazon prime.

That could be something.

That could be something.

Don't bet against the folks, the home of the drone, if you will.

Two points about amazon.

Just this last week, their servers crashed because they had so many sign-ups to amazon prime accounts that it crashed amazon.

That is pretty impressive.

The last we knew about amazon prime, it had about 16 million subscribers.

I would not be surprised if we are well over 20. i was i subscriber over christmas and i did not know there before.

And incremental on a five

This text has been automatically generated. It may not be 100% accurate.


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