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Tuesday, October 26, 2010

The Tech Bubble All Over Again(NASDAQ :NFLX)

The "dot-com bubble" was a speculative bubble from 1995–2000, the highest level of enthusiasm was on March 10, 2000 when the the NASDAQ peaked at 5132.52. The invention of the internet precipitated this boom and then bust. The era was marked by spectacular crashes of dot-coms companies.

Fast forward ten years and this bubble is forming in Netflix's stock and everyone is aware of it. Netflix which is being considered a tech company, is hardly one. The company provides a service to show videos. Not only is this not innovative it has already been done. AT&T, Verizon and many other cable companies have been providing this service for years. Netflix is a low cost producer of these products and its future will depend on revenue growth.

To see our report on Netflix click here

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