How important is Netflix's (NASDAQ: NFLX ) deal with Walt Disney (NYSE: DIS ) ? Very, says Fool contributor Tim Beyers in the following video. The stock has more than doubled year to date on strong earnings and even stronger potential, including a presumed tailwind from nabbing streaming rights to new and old Star Wars films.
But it also isn't that simple. Not once since December has a Netflix executive uttered the phrase "Star Wars" at an investor conference. Why? Perhaps because the deal is so complicated. Streaming rights for new Star Wars fare that reaches theaters before 2016, when the Netflix deal goes into effect, should instead go to Starz.
If you're already a Netflix bull, this news won't (and shouldn't) change your thesis for buying, Tim says. Just be aware that some of the run-up may be due to incorrect ideas about Netflix's rights to stream Disney property. Stay cautious and build a position slowly.
Do you agree? Please watch the video to get Tim's full take, and then let us know whether you're buying, selling, or shorting Netflix stock and why.
What's in store for this stock?
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