Although Netflix (NASDAQ: NFLX ) had enormous subscribership growth in 2011, its costs also exploded that year, leading to the company's least profitable year yet in 2012. How should investors read this to know where the company is headed in 2013? In the video below, Fool consumer goods analyst Blake Bos gives investors the most important ratios to follow to know whether some of Netflix's most recent headline-making endeavors are truly paying off for shareholders.
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.