Motley Fool analyst Rex Moore says Netflix
Bears will point to a plethora of deep-pocketed competitors hoping to enter the space -- including a proposed streaming service from Amazon.com
No one follows the stock more closely than the team at Motley Fool Stock Advisor, where it's a Core holding. Stock Advisor analyst Andy Cross says he worries about the money Netflix will have to spend over the next few years for content -- for example, what will it cost to renew its deal with Starz? On the other hand, Andy says there's plenty of value in the future of streaming, the superior customer service, and the Netflix brand.
Bottom line: Netflix is a great company with some differentiated offerings. It's everywhere -- in the Xbox, Wii, TiVo, even the iPhone and iPad. It should only be held only in proper allocations, however, because it's risky. If it keeps one-upping competitors, the great performance can continue. If not, investors will punish the stock. Buy only if you understand the risk-reward profile.
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