Tomahawk, WI 03/13/2014 (Basicsmedia) – The shares of Netflix Inc (NASDAQ:NFLX) declined by 0.21% to $436.58 in yesterday trades and recovered to $438 in the after-hours trading by gaining 0.33% on the day close rate. The stock has come a long way since it stood at below hundred dollars in January last year at a price point of $95.98. Over the last year there is a 13.37% increase (636% over last two years), in the stock price of the television Network that also serves its US customers mail order Blue Ray discs.

Is NetFlix Frenzy Comparable To Tulipomania?

In an interesting article an analyst has compared the Natflix Inc (NASDAQ:NFLX) frenzy to the Tulipomania that prevailed in 1637 considering the case similarities between the two phenomenon. The article concludes by saying that the two year uphill journey of Netflix Inc (NASDAQ:NFLX) stock will burst as a bubble since there are no fundamentals to support the price. Although the comparison is very appealing where Netflix Inc (NASDAQ:NFLX) share is said to be worth the opportunity cost of 202 pounds of butter , a silver drinking cup, or 20% of hogshed, there is one deep loophole that I see. None of those other things could give you a earnings potential and a stack in a long standing growth business. Those are all consumable and the comparison, as far as I see is not Apple to Apple!

So What’s The Real value Of NetFlix

Netflix Inc (NASDAQ:NFLX) is currently priced at 94 times the Earnings estimates and 184 times the trailing 12 months earnings. The consumer survey reports in the US have shown that 49% of US video watcher use Netflix Inc (NASDAQ:NFLX) against Youtube, 69% of the current subscribers confirmed their loyalty towards it, 10% of multi-streaming usage plans subscribers sign up for NetFlix’s Device Streaming. It shows that the internet TV is becoming an internet utility company in US and that is quite a strong fundamental to invest in.

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