Serious Money: Netflix and Tulips

Filed under: Netflix, Inc. (NFLX), Serious Money, salesforce.com inc (CRM), Stocks to Sell

The Tulip mania in Holland went on for seven years, supporting John Maynard Keynes commentary that "the market can remain irrational longer than you can remain solvent." This is one of my favorite stock market quotes, so forgive me if I repeat it too often. Although, I'm not sure that is possible when I watch Netflix, Inc. (NFLX) stock price continue to soar.



The stock was up almost 5% yesterday, on a down day, closing at $187.88, with a P/E of 70.90 -- that's 71 years times earnings folks!



Is that sensible? Investors are saying who cares? And the analysts are supporting them. The fact that analysts have a horrible track record and that the stock is highly speculative has become irrelevant.

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Serious Money: Netflix and Tulips originally appeared on BloggingStocks on Tue, 11 Jan 2011 17:00:00 EST. Please see our terms for use of feeds.

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