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May 16, 2007
reactions
I noticed today that Netflix's quarterly statements just came out. My logic would dictate that if you did half as well as last year, your stock should be half as much. But, the market doesn't react in that way. Or, if a company's long-term prospects isn't very good but short-term is doing well, the market rewards such behavior.
Actually, it never reacts as what one person's subjective view might think.
Here's the definition of cost of revenue.
In such cases, it's up to the investor to try and identify the items that make up cost of revenues. This determination should be made based upon your understanding of the company and its business.
Posted by azileretsis at May 16, 2007 08:28 PM
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