The Bullish Case for Netflix

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.

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David Meier owns 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.


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