Question

It turns out there was much to like about Netflix’s performance and growth over the prior...

It turns out there was much to like about Netflix’s performance and growth over the prior decade. Yet certain analysts were skeptical about Netflix’s prospects. Why do you think analysts disagreed in 2011 over the prospects of Netflix?

Homework Answers

Answer #1

Analysts had a negative prospect about Netflix because of few events that took place in 2011
1.Nettflix hiked its subscription prices in July,2011 and as a result of which a million subscribers fled the service.
2.Stiff competition from Apple, Walmart and Amazon which had tremendous financial backings, was another reason for the pessimistic view.
3.Netflix had made some costly international expansion which was seen with pessimism because of faltering numbers.
4.The valuation of Netflix was extreme, which signaled that it was priced for perfection.
5.Netflix transition from DVD to online streaming business means it no longer was the dominant player.

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