Remember all that junk on investing you learned in college? Toss it in the trash, at least when it comes to Netflix (NFLX) .
Shares of the video streaming king ripped to an all-time high after blowing it out of the water with respect to second-quarter results on Monday. What was already a pricey stock is about to become that much richer, which must be killing the well-known Netflix valuation bears on Wall Street.
Although Netflix didn't impress on earnings per se, it checked all the boxes on what it needed to do to keep momentum investors enthralled:
- Strong U.S. subscriber growth.
- Strong international subscriber growth.
- Execs talked strongly about how Netflix continues to upend its industry.
- Company made money (always an unknown when it comes to a tech company investing in its future).
- Signaled more interesting things ahead (content, growth plans, etc.).
Bottom line on Netflix: Shorting the stock will likely continue to be a losing proposition as long as the company continues to impress Wall Street. And why is the company capturing minds out in the financial district? Pretty simple. There is a fundamental trend among millennials to sit home after work and watch movies. Whether it's due to sheer exhaustion, or a preference to cut the cord, this large group of people is consuming massive amounts of on-demand content. That will probably only strengthen, believe it or not, and push Netflix to even higher heights of valuation insanity.
Shares will open at an all-time high on Tuesday.
Love me some on-demand Rocky 1.
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