A Fool Looks Back
Just when you thought Netflix's (NAS: NFLX) comedy of errors had ended, it turns out that the flick flop was simply at an intermission.
Netflix gave skeptics more ammo when it revealed that it will raise $400 million through stock and convertible bond offerings. The kicker is that it's selling new equity at a third of the price that it was buying it back at earlier this year.
The need for cash became apparent when -- as another stinker -- Netflix revealed that it will post a net consolidated loss for all of 2012. Netflix had recently pointed to the costs of expanding into Ireland and the U.K. as the root of the red ink early next year, but if it's now going to consume an entire year of profitability, maybe crossing the pond isn't such a good idea.
Well, the curtain's coming down again. The comedy appears to be over. Things really can't get much worse than averting a cash crunch using what seemed like cheap shares as collateral and a lack of near-term profitability. Right?
Please tell me I'm right.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
- TiVo (NAS: TIVO) posted a widening quarterly deficit, but it did come through with its first quarter of net subscriber gains in four years. Where's that "thumbs up" button on the TV remote again?
- The New York Post reports that Liberty Capital (NAS: LCAPA) is in early negotiating talks to increase its 40% preferred-share stake in Sirius XM Radio (NAS: SIRI) . Buy buy booey?
- Shares of E-House (NYS: EJ) slipped after posting an unexpected loss in its latest quarter. The Chinese real estate services provider may want to consider selling its shares "as is," given the tenuous nature of China's frothy real estate market.
- Music-discovery website Pandora Media (NYS: P) , on the other hand, surprised investors with an unexpected profit. It's been back-to-back quarters of profitability for the company that many figured was years away from turning the corner. The second verse really is the same as the first.
- Google (NAS: GOOG) is killing Knol, its poorly promoted attempt to take Wikipedia to the next level. I guess this Knol wasn't so grassy after all.
Until next week, I remain,
At the time this article was published The Motley Fool owns shares of Google.Motley Fool newsletter serviceshave recommended buying shares of Netflix and Google. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors.Longtime Fool contributorRick Munarrizcalls them as he sees them. He owns shares of Netflix and Liberty Capital and is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Motley Fool has adisclosure policy.
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