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Tuesday, November 22, 2011

Broken Growth Stock Face Off

Much to the delight of this value investor, NFLX and GMCR are now both officially broken stocks.  NFLX is down 75% from its peak and GMCR is down 56%.



NFLX is trading below a 20x multiple at just 16x.

GMCR is still at 38x


The amazing comparison is the market caps.  NFLX is less than a $4B company now, while GMCR is still almost $8B.  Should GMCR be worth twice as much as NFLX?  It has roughly the same revenue...

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