So let's settle the matter. I'm here to tell you why Netflix belongs in your portfolio, whille fellow Fool Matt Koppenheffer will argue the bearish case.
I believe in Netflix as a long-term investment. The stock may rise or fall like a high-octane roller coaster from one month to the next -- but the company has a much brighter future ahead of it than even its currently soaring valuation would imply.
For one thing, the entertainment industry is turning digital, and Netflix is leading the charge in the movie segment. Apple
Sure, there's competition, both real and potential. Apple's iTunes video store looks like a rival, as does the Amazon.com
Then there's the service's integration with leading home theater systems. I dare you to find an Internet-capable Blu-ray player, gaming console, or other set-top box that doesn't feature Netflix streams these days. Google
In fact, Netflix has a downright ridiculous head start, including prominently placed Netflix buttons on remote controls nearly across the board. Buy a TV or Blu-ray player from Sony
That's the domestic lay of the land, but Netflix is also busy exporting its streaming model to other nations, starting with Canada. If recent job postings are any indication, the company wants to establish a very large international profile indeed, across Europe, South America, and even the Far East. And I don't think any of that has been priced into the stock yet.
Click here to see fellow Fool Matt Koppenheffer's bear case for Netflix, then come back tomorrow to see our rebuttals, where I'll give my two cents on Matt's bearish argument.