NEW YORK (The Street) -- It turns out that taking a skeptical view of TiVo (TIVO) shares after the company beat fourth-quarter earnings results in March was the right thing to do. There wasn't anything compelling about the Alviso, CA.-based digital television recording specialist's numbers that suggested TiVo stock had any more value than, say, a traditional TV/media name like Time Warner Cable (TWC).
At the time, TiVo's stock traded at $11.56. Now, almost three months later, the stock is down 8%. During that same span, had you bought shares of TWC, you'd be up almost 10%.
TiVo stock closed Friday at $10.63, down 0.28%. The stock is now down more than 10% year to date, trailing the broader averages. With the company due to report first-quarter earnings results Tuesday before the opening bell, investors are watching intently for an entry point. But why go long here? Where's the value?
While TiVo bills itself as a software and technology guru for advanced television viewing, services like Netflix (NFLX) have made TiVo obsolete. What's the point in recording a show when consumers can get the same programming on demand from Netflix or Time Warner Cable? And with rumors circulating that Apple (AAPL) will enter the streaming mix, what will be left for TiVo?
To say nothing about premium cable channels like HBO and Showtime now offering their own subscription-based services that allow consumers to stream programs from tablets, smart phones, and a host of other supported consumer electronics.