My buddy David Hegarty writes a killer blog, the 314 into 206. I'm not sure what that title means, but I haven't really explained Kenny Kellogg yet either. Anywhoo, David announced on his blog that he was tripling down on Netflix today.
The background is that Netflix lost 25% of its value today because they announced they would be investing more in infrastructure to deliver movies over the Internet. Wall Street didn't like the sound of that and punished the company.
Is there any doubt that Netflix needs to have this capability though? I think it's great that management is playing for the long term. David likes the company for this reason and because they have an amazing recommendation engine. I think he makes a great point. Who has the best recommendation engines around? Amazon, Netflix, and Pandora come to mind. Who else do you like because of their recommendation engine?
Through the miracle of Covestor, we can track David's trades and we'll know in a few months whether this was a good idea.
Just to prove he's not a total stiff, here is an artsy entry from him and another one that highlights his favorite music of 07'.