Netflix, Inc. (NFLX): Can It Reach Its All-Time High Again?

So valuing Netflix through dividing its enterprise value by the number of subscribers isn’t fair, but bears also can’t ignore the advantages Netflix has over other entertainment providers.

Bears may also want to steer clear of arguing that Netflix, Inc. (NASDAQ:NFLX) is expensive based on earnings multiples when profitability is held back by steep losses overseas.

This is a different Netflix these days. The Netflix that peaked two years ago was bid higher on its ability to push up average revenue per user, a lot like the cable companies are being viewed these days. The Netflix that’s rallying now is being pushed higher by an explosion in subscriber growth and one of the more deceptive moats on the planet. If you think anybody can launch a Netflix killer, you may have missed the memo about how much it would cost to build up a Netflix-esque catalog. You may be missing how studios will be at the mercy of Netflix as the only destination to generate material streaming licensing revenue and an audience.

Netflix is expensive. Netflix is cheap. This is the kind of disparity that will continue to make Netflix stock a volatile investment that nobody understands but everybody thinks they do.

The article Can Netflix Stock Hit $304.79 Again? originally appeared on Fool.com is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends and owns shares of Netflix.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.