Have we seen enough of Netflix according to David Einhorn ?

18.01.2017 / 10:08

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The founder of Greenlight Capital, said in his annual letter to shareholders on Tuesday that he added Netflix to his "bubble basket". This kind of stocks mostly don't have profits, which makes them unlikely to benefit from corporate tax cuts,"

In the third quater , the company generated $75 million of net income on $2.29 billion of revenue.

Additionally, Netflix could suffer should President-elect Donald Trump push through changes to net neutrality, a rule put in place in 2015 that requires broadband carriers to provide equal treatment to all internet content, rather than charging consumers different rates based on the provider and type of content being delivered.

Einhorn is also no fan of Netflix's jump into original content, which has produced a number of Emmy and Golden Globe awards and helped bolster subscriber numbers.

Financially, "it has not demonstrated that its huge investment in original content has a positive return," he wrote.

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Have we seen enough of Netflix according to David Einhorn ?

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