Shares of streaming video company Netflix (NASDAQ:NFLX) were up big today after it announced a strong quarter, which included beating analyst estimates for EPS and meeting estimates for revenue. Even more important, the company saw its total number of subscribers grow to 48.4 million, a new high.
But the real highlight from Netflix was the comments from Reed Hastings about the proposed Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC) merger. Despite the fact that Netflix recently made a deal with Comcast to pay extra for faster streaming service, Hastings has said that he doesn't approve of the upcoming merger. But Hastings' fears may be justified: A combined Comcast and Time Warner Cable would create a titan in the cable industry whose services would be available to 70% of the U.S. population.
So what's the next step in this saga that investors should be watching for? On today's Stock of the Day, Motley Fool analyst Michael Finarelli says he'll be watching the merger proceedings between Comcast and Time Warner Cable closely, as will Federal regulators. Regardless of that, Michael believes that Comcast's position as a sort of toll bridge for cable and Internet streaming gives it an extremely strong hand.
Your cable company is scared, but you can get rich
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Mark Reeth and Michael Finarelli have no position in any stocks mentioned. The Motley Fool recommends and owns shares of 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.