Not Buying the Netflix, Inc. (NFLX) Euphoria

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While that is always possible, I just don’t see it happening.  Since 2008, the most profitable year for the firm was fiscal 2011 when the company earned $4.28 per share.  At its current price, the company would still be trading for more than 40 times those earnings.  The fact is, the company would have to grow earnings at such an eye-popping rate to justify its current valuation that I can’t bring myself to buy the stock, and would advise most investors to do the same.

The article Not Buying the Netflix Euphoria originally appeared on Fool.com and is written by Robert Ciura.

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