Huffpost Business

Netflix: Don't Call Us Obsolete

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Netflix announces its first-quarter earnings after the bell Monday, April, 21. With a spate of upgrades by analysts during Q1, Netflix is expected to demonstrate that its momentum isn't slowing, especially since its rival in the DVD-by-mail business, Blockbuster, looks to be more and more occupied with its bricks and mortar stores and a takeover bid for Circuit City. But as is always the case with Netflix, there are a lot of folks expecting the online video service to falter somehow - almost 40% of the public float is short-action. Still, those folks have been wrong in the past.

A Silicon Valley venture capitalist, proud of a recent Web 2.0 investment that offered digital downloads of video, once described Netflix (NFLX) as an "ice cube in the sun." That was almost three years ago, and Netflix, No. 46 on Fortune's list of fastest-growing companies for 2007, shows no signs of melting. All indications are quite the opposite. Last year was tremendous for the online movie-rental company based in Los Gatos, Calif., with net income up 36% to $67 million on $1.2 billion in sales. Analysts estimate overall sales will increase 13% in 2008 and 14% in 2009.

Read the whole story at Fortune