Nice read Atlas, Winston and the rest of the board.
Nice discussions here....this would have been deleted at the hub (off topic of course) SMH
The page views on this board have been consistently double or more those of the hub. This speaks volumes.
Nice discussions here....this would have been deleted at the hub (off topic of course) SMH
The page views on this board have been consistently double or more those of the hub. This speaks volumes.
Quote:Winston,
NFLX continues to burn through cash at a very high rate, 78 million during the last quarter 2014 and is not expected to be profitable until 2017. They have sustained growth by increasing subs. Until now that has been their foundation for success. However, by their own admission, they will not be profitable until 2017. So, until then they will continue to burn through millions in cash while trying to grow subs.
In roughly 7 months NTEK has become the 4K king of streaming lossless content at sub 4 mbps. NTEK is growing quickly and has strategically positioned themselves globally for ongoing success in the sub 4mbps vod and live events market. NFLX on the other hand still doesn't have much by way of 4K content much less can they stream it anywhere near 4mbps, more like 16mbps on a good day with reports of 20-25mbps typical. In addition, NFLX has been cutting costs trying stay competitive. The quality of their streaming HD programming has been in a steady decline and it will continue, again it's in an effort to cut costs. Anyone who has NFLX knows they continue to cut programming yet they have increased the monthly subscription costs and will have to do it again to have any chance of meeting their 2017 goal of profitability.
The arrival of NTEK does not bode well for NFLX in any way, shape, matter or form and NFLX absolutely knows this. The quick adoption of 4K, the delivery of pristine 4K, lossless video at sub 4 mbps is a MAJOR blow to NFLX. Make no mistake about it, if NTEK continues exponential growth, continues to partner with major television manufacturers and content providers NFLX will be in serious trouble.
I believe it was designed hype that catapulted NFLX to the 35 billion market cap it enjoys today. Why, you ask? So, that the major brokerage houses can organize their exit strategy, their profitable exit strategy. While NFLX is still a giant and they aren't going anywhere anytime soon, they are in for rough times in the not too distant future.
I believe the market will ultimately value NTEK at a much higher multiple than NFLX's 4X and therefore a MULTI - BILLION DOLLAR market cap much sooner than in your model. First billion could come before the end of this year.
Time, NTEK's earnings release and guidance moving forward will ultimately tell the tale of the tape.
Atlas1
NTEK...GET SUMMM!!!
Read More: http://investorshangout.com/post/view?id=2935...z3ZhJRCD6I
