Thoughts on netflix?

Amazon
LVHx81

Go to company page Amazon

LVHx81
Dec 6, 2016 10 Comments

I've been doing a bit more thinking lately about putting some long-term money into Netflix stocks.

Looking at some of the leading tech companies like Facebook, Google, Amazon: they've got a couple of traits in common. They absolutely dominate their space, the leadership is well liked and respected, and for the most part the public image is phenomenal.

I think Netflix might have the right formula.

Yes their international expansion is a bit meh but I well on its way, and yes they do have a ton of competition.

Would you invest or would you not? Their current valuation is $51 billion. -9.41% in the last year, but up 1097% over the last 5 years.

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TOP 10 Comments
  • Absolutely not. If Netflix makes a profit, the copyright holders just squeeze it out at the next round of negotiation over streaming costs.

    Netflix had a great thing going with physical disc rental. Streaming licensing works completely differently and the terms favor the copyright holders.

    Copyright holders don't need Netflix so they hold all of the power in streaming pricing negotiations.

    Also note that their biggest competitor, Amazon, is happy to offer streaming at break-even pricing. Amazon as a whole doesn't need margins, they certainly don't need margins for a side product like streaming. Its hard to sell something at a profit when someone else is selling it at cost.

    Terrible way to invest your money.
    Dec 6, 2016 2
    • Pandora
      dipthong

      Go to company page Pandora

      dipthong
      This is not the correct way to look at Netflix. They are not just a streaming company but produce and sponsor their own content. They are a media company as much as they are a streaming platform. When you own the content you stream on your platform and that content is in very high demand you get closer to vertically integrated cost structures which can be profitable with the cost of content amortized very efficiently.
      Dec 6, 2016
    • Workday / Eng
      JxJlI9

      Go to company page Workday Eng

      JxJlI9
      Netflix is break even on content though at best. Spends 6 bil on content, makes 9 bil total revenue. At least 3 bil is surely from people who want to watch non-Netflix, so Netflix has got to be even or losing on its content. This means Netflix is way inferior to HBO in terms of subscribers and fees
      Sep 3, 2017
  • I think so. Netflix is doing most things right. They're making their product continuously better. Original content is outstanding.
    Dec 6, 2016 0
  • Netflix is only one stock.
    Dec 6, 2016 0
  • If Netflix gets sports exclusivity, then I will buy it. Right now the only advantage of Netflix is its real content. Amazon prime theoretically can beat Netflix if it gets all other shows on its platform. And prime offers more benefits that Netflix and it's cheaper.

    But once you start sports like NFL and NBA. These guys would do exclusive deals. That would work if Netflix gets them. YouTube and Twitter are up before.

    Long story short, Netflix is good right kow because of its original content. It has to keep that up and innovate.
    Dec 6, 2016 0
  • Salesforce / Eng
    7473636272

    Go to company page Salesforce Eng

    7473636272
    I would be wary of YouTube launching Unplugged.
    Dec 6, 2016 0