2-Star Stocks in the News: Netflix?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, movie rental service Netflix (Nasdaq: NFLX  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Netflix and see what CAPS investors are saying about the stock right now.

Netflix facts

Headquarters (founded)

Los Gatos, Calif. (1997)

Market Cap

$4.4 billion

Industry

Internet retail

Trailing-12-Month Revenue

$3.5 billion

Management

Founder/Chairman/CEO Reed Hastings
CFO David Wells

Return on Equity (average, past 3 years)

33.4%

Cash/Debt

$798.4 million / $400.0 million

Competitors

Apple (NASDAQ: AAPL  ) Comcast
Amazon.com

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 19% of the 9,610 members who have rated Netflix believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, stocky5, tapped the company's recent defense move as a stock price momentum-stopper:

[Netflix's] establishment of a poison pill will remove much of the recent speculation relating to a possible takeover of the company. The recent run up in the stock price was fueled by news of Carl Icahn's purchases. Adding insult to injury, [Netflix] is referring to this move as a "Shareholder's Rights Plan". If you think this poison pill is aimed to benefit shareholders and not management, I have a bridge in Brooklyn for sale.

Of course, that short pitch doesn't even come close to telling the entire story for Netflix. You're in luck, though. The Fool's brand-new premium report on Netflix tells all sides of the story for one of the most compelling tech companies in the world. You can grab your copy now, which comes with free updates for 12 months -- just click here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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