Netflix hit an all-time closing high of $586.34 today on positive growth numbers and imminent profitability. Personally, I have been short Netflix since 2010, and I reiterate my position today. My thesis has hardly changed as I am more confident than ever that NFLX is headed to zero.
Back in 2010, Netflix was a silly little operation that mailed out DVDs. Their business model was antiquated, and just as I predicted, that portion of the business became obsolete very quickly.
Shortly after, Netflix moved towards streaming as its primary offering. At the time, I declared that streaming was a horrible business to be in if you didn’t actually own the content. Sure enough, I was vindicated this year when Netflix’s most popular show, The Office, was removed from Netflix by NBC.
Another stunning prediction that I nailed!
I am very confident that many other content owners will eventually remove their shows and movies in order to create their own streaming services. To counteract this, Netflix has been scrambling to create their own content. Their first hit show, House of Cards, did well. However, star Kevin Spacey became embroiled in a scandal.
How embarrassing for Netflix! I am positive that the market will see this misstep and lose confidence in the management team any day now.
Get out before it’s too late! Netflix will be losing all their subscribers soon once the world collectively understands that all eight billion people on this planet can just pitch in to buy one single log-in for the platform.