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CEO Reed Hastings has said Netflix needs funds to produce its own content, suggesting a share offering is possible.
CEO Reed Hastings has said Netflix needs funds to produce its own content, suggesting a share offering is possible.
(Michelle Siu For The Globe and Mail)

Netflix: a great company (but not at this price)

Netflix Inc. has a lot of things going for it, but a sensible stock price isn’t one of them.

Just ask the company’s chief executive, Reed Hastings, who attributed the stunning move in the share price so far this year to “momentum-investor-fuelled euphoria.”

Most executives like to talk-up their stocks as undervalued investments worth betting on – so talking-down a stock is not only unusual, but probably a good indication that something isn’t quite right here.