The SEC vs. Netflix


The following video is from Friday's Motley Fool Money roundtable discussion with host Chris Hill and analysts Joe Magyer, James Early, and Ron Gross.

In this segment, It's been an eventful week for Netflix . Back in July, Netflix CEO Reed Hastings congratulated his employees about the fact that subscribers had watched 1 billion hours of video the previous month. Hastings did this in a message he posted on Facebook. On Thursday, the SEC notified Netflix that it's considering taking action in what may be a violation of Regulation Fair Disclosure. The guys analyze whether this will be a problem for Netflix. They also discuss the recent news of Netflix's deal with Disney, and whether it makes Netflix stronger, or merely a more attractive take-out candidate for Apple.

The precipitous drop in Netflix shares since the summer of 2011 has caused many shareholders to lose hope. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why we've released a brand-new premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.

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Chris Hill has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Walt Disney, and Netflix. Motley Fool newsletter services recommend Apple, Walt Disney, 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.

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