[quote=gzz]NFLX is overvalued. The main thing they do is bundle streaming content. There’s no moat around this, and content providers like Disney, HBO, Discovery/WB and Paramount are cutting out the NFLX middleman.
Netflix is kinda like TimeWarner cable, except TW only has to compete against ATT cable and DISH.
Also, NFLX is competing 100% with Amazon. How has that worked out for other companies?
They will do fine long term, but gradually decline as just one of many streaming companies. Their margins were helped for a long time because they were the gorilla in internet distribution and could buy content at good prices. But now they have to bid against all the other services, and are locked out of a lot of the content like Disney.
ATT just spun off to its shareholders DiscoveryWB, and I will sell isoon for similar reasons while keeping ATT.
Besides competing with Amazon, Netflix also has to deal with the newer services all being willing to discount deeply to unprofitable levels to get their initial customer acquisition.[/quote]
I guess we’ll have to wait and see. Currently, both revenue and profit margin have been increasing for the last 4 years.
