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Thanks are a share is the Napoli extending earlier gains after -- company said today it's killing plants is split up its mail order dvd service and the decision to cancel quick star.
Is being welcomed by both investors and customers but will it fully restore confidence in flicks.
Barton Crockett cover is a stock as a senior analyst atlas.
Barton -- stock was a big winner this morning and then just within the last hour it turned negative so what's the story that we can read into this -- -- I think there's clearly a mixed read in the market and on a positive.
Quick serve their dvd by mail re branding was a bad idea -- tropic quickly and that's great you know so that's the initial positive reaction.
As people think about -- wanted to there was a story Annapolis to be a takeout target after -- streaming in dvd only.
Now -- Los that's whenever subscribe to that but I think that's part of why the stock has turned.
I certainly heard those rumors as well in that news came out but now it's decided to undo what it said it would do a month ago what is the road ahead look like for Netflix and can -- ever get that Lester back that it had not so long ago.
-- it's relates in it it's a great story right there's not a company that for so many years seemed like they could do nothing wrong and then.
Quickly if they're two very big missteps the re branding what they retrace and the big price hike which sparked a bunch of you know basically puts us from the customers.
I think from here Netflix faces a difficult road.
More competition to the streaming service domestically.
A decline in the dvd by mail service domestically but a lot of opportunity international.
You know we think that that's out to a stock there were still not eager to hold today.
At a 26 He it's -- -- a lot of growth then it's hard compass management team up with a face formidable force is that will only grow part of all the time.
You talk about the management team which is led by Reed Hastings this video of this company not the most open and public diocese and -- spotlight not really.
Press friendly and also made a series of public relations if if you will miss stats by announcing this price increase.
And just throwing it out there on a blog and then I.
And then responding to that after a million -- decided to cancel and then doing the same sort of saying.
What is the future hold for Reed Hastings.
All readers that guy has been tremendously successful are marching to its own drummer and ignoring what other people saying just doing what He thinks is right.
And that's great networks until it doesn't you know and everyone's human and he's proving that.
Even someone as talented as we -- so think it made a couple of missteps I think they'll put together from here but they face a lot of competition I think over the next several years.
You talk about competition eight -- at it faces stiff competition from iTunes Amazon right even Hulu.
How -- the landscape gonna change because right now Netflix is really.
Synonymous with streaming music industry -- stream movies I should say now there's so many other different choices how is it competitive landscape.
Going to change how the consumer.
I think we're going to see is that everyone's kind of rushed to put stuff online.
That's going to be part of your cable service of the public -- Recent shows in older shows online for your cable company.
He'll be able to get that from people like Google people like Amazon.
They're all have the ability to write big checks to match snapped what's in that department.
To have a relationship with the consumer.
And these are people end up what's hasn't seen competing -- found today so that's going to be tough challenge for them going for.
What about the price I have off line that would one of our senior producers here loom guys him and -- says He -- that.
Netflix is gonna have to -- -- its price increase I stay -- firm and I think I don't think that's going to happen willing in your opinion.
I will we ever have to C a price change coming out of net.
Flex I don't think so I mean they have the chance this morning to backtrack on that they didn't take it I'm they've made their stance they've absorbed the -- -- it -- from a I'm so from here I think that's how they're cannot live.
And job in on I think they'll have a better a couple of months or or -- -- for the past couple months no one can only hope but over the next several years I think that it will be challenging.
And outlook for the next year on Netflix shares you think He get ever get back to their all time high that was just -- Three months ago.
What's that's a volatile stock it's hard to never say never but I think over the long term it's -- be accomplished its balance to grow.
You know over the next year you're not gonna neutral rating on I'm not looking -- to get up to 300 bucks obviously.
So why I'm so cautious that this.
-- -- 114 dollars and seventy cents a far cry from where -- was that in July up down actually more than 60%.
Since then it's going to be a rough road back to recovery.
For Netflix -- in meantime.
Proven to me that I should have made a bigger bat with asking competitive and thank you very much to Barton Crockett at analysts -- capped.
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