Based primarily on the extraordinarily high price to earnings ratio and the complete lack of anything resembling consistent earnings growth. Metrics like revenu

Based primarily on the extraordinarily high price to earnings ratio and the complete lack of anything resembling consistent earnings growth. Metrics like revenue and subscriber numbers don't mean much if they can't reliably make a profit off of them. Don't get me wrong; I do think that Netflix (or something like it) represents the future of content delivery and that there is incredible room for growth. Unfortunately, the potential upside is already priced into the shares. They may have a first mover advantage, but they do have competition (Hulu, Amazon, et cetera). I think they would be a decent speculative bet at a PE of 20, but not at a PE over 100.