I wrote about my short thesis on Netflix (NFLX) just about ten days ago. The company just the other day reported growing earnings but disappointed with a weak outlook. The stock fell a whopping 24% as investors ran for the exits. The market responded negatively to the increase R&D costs for developing streaming technology that would allow the company to deliver long-form digital video content over the Internet. These recent expenses have slowed down profit growth and promise to weigh on foreseeable future earnings.
My short thesis …

Venture capital follows the public equity markets. So it is no coincidence that many VCs think that funding activity will slow down in the foreseeable future. KPMG, the large accounting firm, surveyed venture capitalists and found that 69% of respondents think that we are currently in a recession. A whopping 90% believe we will see a drop in initial public offerings. All in all, this will result in less money raised in venture capital partnerships and thus less money available for startups. Startup funds will find …