Is Netflix Stock a Safe Bet?


Netflix has started the year in impressive fashion. So far this year, Netflix stock has run nearly 150%. While the company has served as a model for Amazon Prime and Redbox Instant -- the joint venture between Coinstar and Verizon -- understanding the difference between Netflix stock and Netflix itself is important. Google just joined the paid video streaming business, but this should lead you to question the long-term viability of the business plan. If the company cannot grow revenue, eventually Netflix stock will be punished as well.

In the video below, contributor Doug Ehrman discusses the video streaming industry, factors that will affect Netflix stock, and whether your investment dollars are better used in other places.

The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. 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 The Motley Fool has released a 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. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.

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Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends, Google, and Netflix. The Motley Fool owns shares of, 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.

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Originally published