More food for thought. Another analyst, Richard Tullo at Albert Fried, explains why he remains bearish NFLX in a Wednesday afternoon note:
So why are we apparently doubling down on a bad call? We think management has overly dismissed real risk, as represented by the company's aggregate $5.7 billion content liability of which $1.3 billion or $21 per share is due in the next 12 months. We think NFLX will raise more debt as it did in 1Q13 and therefore rolling capital raises increase long-term costs and impair EPS as NFLX earned just $0.05 per share in 1Q13 due to a debt raise. Essentially current enterprise value and future FCF (free cash flow) gets transferred from the stock holder to the bond holder in our view when a company raises debt and as liabilities exist off balance sheet ...Bingo. Follow @rocco_thestreet -- Written by Rocco Pendola in Santa Monica, Calif.