This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Netflix Passes $100 With a Side of Post Office Love

Stocks in this article: NFLX DIS AMCX AMZN

The big one for me is the DVD thing. That doesn't get enough play. Reed Hastings made the DVD irrelevant a long time ago.

That's likely why Friday afternoon's news that the U.S. Postal Service needs to explain why it gives Netflix DVDs preferential treatment over, say, Gamestop video games flew under the radar.

It's worth a few sentences simply because it's an interesting case. The Post Office gives Netflix its own bins and handles the company's DVDs by hand. USPS processes everybody else's DVDs, video games and such via the standard and inferior auto-sort system. What does Gamefly expect?

In the red envelope's heyday, the post office really had no other choice. Did you ever see a mail carrier's bag when Netflix DVD was peaking? There's nothing even close to that level of ubiquity now, not even (AMZN) boxes or election booklets in October.

But the DVD's dead now. Hastings made it Netflix's redheaded stepchild and proceeded to kill it. He put his money not only on streaming and international expansion, but on original programming. It must succeed in a big way for Netflix to win.

Over the weekend, I ran into somebody who works on a team that produces Netflix original programming. This person echoed my thoughts -- if the original programming doesn't take off Netflix is finished.

In other words -- and this is me talking here -- Netflix needs to hit a level somewhere within spitting distance of HBO. If it doesn't . . . if more than one of its original shows fails to catch on, we'll see another massive NFLX crash from these new highs. Because, make no mistake about it, while NFLX will gyrate, this thing's going to keep climbing. It has nine lives. I've lost count how many it has used so far.

--Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs