Analyst Netflix Will Go Bankrupt In A Year
Netflix's announcement on Monday that it had aborted plans to separate its streaming and DVDs-by-mail service halted the steep slide of its shares only briefly on Monday before they slid again near the close, despite a bullish day on the Nasdaq. They dropped again today (Tuesday), falling at midday to a 52-week low of $106.38, down nearly 5 percent from Monday's closing price. The influential investors' blog SeekingAlpha.com said today that Netflix's financial is so "dire" that it "could be bankrupt within a year." The company, it said, "is in real trouble. This company has much deeper problems than just a series of PR flubs. It is nowhere close to being able to pay back their debts due within 1 year, let alone the next $1.3 billion due between 1 and 3 years." On the other hand, Anders Bylund of TheMotleyFool.com wrote that Netflix's increases in subscription fees could boost its sales 12 percent. "This makes Netflix a solid buy in my book again," he said.