Netflix Stock Was Never Cheap (but It Made You Rich Anyway)
Digital video veteran Netflix (NASDAQ: NFLX) has rarely been a cheap stock. The company consistently invests whatever spare capital it has available into accelerating its top-line growth for the long haul.
The bottom line typically hovers just above the breakeven point, making Netflix a tough pill to swallow for traditional value investors. Apart from the brief Qwikster episode of 2011 and 2012, where Netflix's share prices fell more than 70% on a year-over-year basis, the stock's price-to-earnings (P/E) ratio has hovered near 100 times trailing earnings for more than a decade. Right now, for example, Netflix's P/E ratio stands at a kingly 91 times earnings.
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Source Fool.com