Berk Sure Has A Way

Putting my mouth where my money is.

Archive for February 2011

7 Reasons Why Netflix Will Soundly Beat Amazon in Online Video

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I posted another article to Seeking Alpha (where I am currently publishing all stock related posts).

Here is a quick summary:

Amazon has entered the subscription video business.  While Amazon may want to win in this space, it may not have the financial will or the strategic necessity.  Netflix will fight hard for leadership in this space, since it is an existential issue for it.

Netflix has the momentum and their growth will be dented but not halted.  A critical mass of paying users allows for the best and most exclusive content, which reinforces the critical mass of paying users.

The ultimate winners may well be the content producers who have been looking for a credible threat to reduce Netflix's growing clout. While Amazon and Netflix will both continue their amazing growth, both will likely have lower margins because of Amazon's entry. How will that impact on their super-charged, high octane, high-flying stocks? That is another story for another blog post.

See the full post, including my 7 reasons here:

Netflix vs Amazon 

Written by Kevin Berk

February 28, 2011 at 9:05 AM

Posted in Company Strategy

Tagged with , , ,

The Bubble Is Back: Will Demand Media Go Below $10? – Seeking Alpha

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Is Demand Media (DMD) another case of great company but a terrible stock?

If you bought at the IPO or are otherwise able to sell your shares, I would recommend selling. It may go higher, but more likely it will go much lower.

Full Article here:

Demand Media – Overvalued?

Going forward I will be publishing my full articles at SeekingAlpha. My page there is: http://seekingalpha.com/author/kevin-berk/articles

Written by Kevin Berk

February 25, 2011 at 1:24 PM

Posted in Picks and Pans

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