The Bullish Case for Netflix

Before you go, we thought you'd like these...
Before you go close icon

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

It's been a rough ride for Netflix since last fall. But things are really looking up. Since its disaster last fall, the company has been adding subscribers, and those subscribers are watching content. Just recently, for example, we learned that Netflix's monthly viewing exceeded 1 billion hours for the first time ever in June. There are, of course, plenty of competitors going after eyeballs. Amazon.com has an offering. Google has YouTube, which is growing. Apple continues to move into streaming video, and DISH bought Blockbuster's assets. But none of these competitors seem able to get the same traction as Netflix. John and David think Netflix is worth buying today. As it attracts more members, it will be in a better position to go after content. More content will attract more members, thereby putting Netflix is a strong position. And as the streaming gets to scale, incremental members will be very profitable and very valuable.

Big tech names might gather a lot of investor attention, but the truth is they're playing second fiddle to an even larger revolution in technology. To better prepare investors for this new revolution, The Motley Fool has just released a free report on mobile named "The Next Trillion-Dollar Revolution" that details a hidden component play inside mobile phones that also is a leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.

At the time this article was published David Meierowns shares of Apple. John Reeves owns shares of Apple and Google. The Motley Fool owns shares of Apple, Amazon.com, Google, and Netflix. Motley Fool newsletter services recommend Amazon.com, Apple, Google, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners