I recently had a Netflix coverage close, and I couldn't miss out on all the upside left in this stock. Vizio's 1080p XVT line is just starting to ship, and it's got internet apps cooked right into the TV.
And if you read the transcript of the latest earnings call
Here is the interesting part,
"We think that most TVs, almost all Blue-ray players sold this year in 2010 will have internet connectivity and Netflix. A substantial faction of TVs will have internet connectivity and almost all of those will have Netflix. Within 2-3 years my sense is WiFi is so inexpensive to add to TVs that they will be in every screen and we believe that Netflix will be part of that. So the long-term picture really driven by TVs, Blue-ray, but in the short-term video game and laptops are big contributors also."
So for Netflix, this is as big a dimension in terms of expanding their reach as the video games are today. They love being on PS3, Xbox, and soon Wii. But that is not the only place they want to be.
I have set out some arguments in past articles about why I think this company is a long term winner. Great website, tapping into social networking, good recommendation engine, and of course the streaming angle. The naysayers kept doubting Netflix right before earnings, and now for the 4th time in a row they beat expectations.
And all of that is a bonus on top of, this company makes money hand over fist. Now there is some general uncertainty in the market, so I am saying this may be the kind of stock that does well even when most stocks are steadily losing value. A 'flight to quality' stock if you will.
One big dynamic I would point to that has happened recently is a growing awareness of Netflix as a company, as an innovator and as a powerful consumer brand.