Reed Hastings Should Sell Netflix, Inc. (NFLX) Off: Brian Kelly

Netflix, Inc. (NASDAQ:NFLX) tried to increase its subscription fees by a dollar and the stock is sown an almost 20%. Just a few days ago, people had very high hopes for the streaming service and now after a lackluster earnings report, panellists on CNBC were already talking about selling the company. Welcome to Wall Street!

Brian Kelly, founder and managing member of Brian Kelly Capital LLC, and CNBC Digital Senior Writer, John Jannarone were two such panellists who shared a rather glum outlook for Netflix, Inc. (NASDAQ:NFLX). Kelly was more drastic in his approach and said that the famous investor and Chairman of AXS TV, Mark Cuban, has it right, Netflix should sell itself.

“[…]On Netflix the only thing I agree with Cuban [Mark Cuban] on, is that they should sell this company. This is AOL, they should take AOL and merge it with Time Warner. Netflix should sell to Apple and go on. The business model is broken. If a dollar is a problem for your customers, you got a bad business model,” said Kelly.

Some investors might think that Netflix, Inc. (NASDAQ:NFLX) is on its way to expanding in international waters, which could provide a boost to the company’s subscribers number, but Jannarone didn’t see eye to eye with them.

The crux of the matter is that if a slight change in the subscriber fee can discourage customers then that means there are other options available for them, and Netflix’s content might not be the most sought out thing after all. Moreover, this could prove even more fatal for the company in the future as competition in the industry increases. Just recently HBO announced that it is going to be starting its very own platform like Netflix too.

“[…]I think that there are fundamental reasons to be worried about Netflix, Inc. (NASDAQ:NFLX). I talked to a couple of hedge fund managers last night, who shorted the stock and they said, look, the subscriber numbers, they really whiffed. I was bad. I mean they were talking about 1.3 million and it came out under a million,” remarked Jannarone.

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