Critics say that Netflix (NASDAQ: NFLX ) can't afford its rising costs in the long run. Even longtime Netflix fans and owners like Foolish veteran Rick Munarriz look for inventive ways to counterbalance its rising content licensing fees. But these skeptics are reading the company's margin trends exactly backward.
In this video, Fool contributor Anders Bylund explains how exploding margins in the streaming division are driving Netflix shares to new highs.
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.