Netflix vs. Gold, NFLX Price/Sales Ratio at 2003 Highs, Going Parabolic!

The Netflix (NFLX) chart is in parabolic mode. It just hit $170, up 209% year to date. Of course with Blockbuster bankrupt and AppleTV streaming Netflix, you can understand why. I embedded a chart of NFLX revenues and its Price/Sales ratio over 5 years. NFLX P/S went from 1.28 in December 2008 to 4.75 today and revenues increased from $359 to $519 million. The NFLX price/sales ratio hit a peak of 5.54 in 2003. This will be a great short on a trend break, but let it ride. Back to my original point. It appears that the the real store of value, for the time being at least, is a basket of paper envelopes backed by DVDs and streaming movies (and TV episodes). In 5 years $GLD returned about 200% and NFLX 820%!

NFLX vs. GLD 5 Year Period (Courtesy of FreeStockCharts.com




Netflix Stock Chart by YCharts


Static snapshot: NFLX Revenues (orange) vs. P/S Ratio (blue)

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