Streaming-Neutral Alpha Capture: Short Netflix, Long Gamestop

Thu, 03/29/2012 - 04:36 EDT - Seeking Alpha

By Modernist:Both Gamestop (GME) and Netflix (NFLX) are transitioning from physical to digital business models. They both have around 20MM (18M Powerup Rewards, 23M Netflix Subscribers) members in their formal programs. They both have to prove themselves in digital, perhaps in direct competition with content creators.But Gamestop

benefits from a demographic shift from watching to gaming
is more heavily shorted than Netflix
is harder for outsiders to understand, compared to Netflix
has a lower P/E than Netflix

I don't hate Netflix, I don't love Gamestop, but I love money, and I think the market has left some on the table here.I'll be honest with you. I don't know which direction these streaming leaders are headed. That's why I like this "streaming neutral" bet. It's a way of saying to the market with your money, "I don't know what will happen in streaming, but I don't think Netflix is 3Complete Story »

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Streaming-Neutral Alpha Capture: Short Netflix, Long Gamestop

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