Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of online movie giant Netflix
So what: Terrible is the burn of bloodthirsty competition! Today, Amazon.com
Now what: Anecdotally, I logged on to Amazon this morning and read the letter on the front page. As a Prime subscriber, my first thought was, "Wow, what do I need Netflix for now?" As I noted, this is exactly the kind of reaction that Netflix investors are concerned about. Of course, in my case my next thought was "Oh, right, Arrested Development." The return of that cult-hit TV show as a Netflix exclusive is one big win the company has in its corner. With competition heating up, it may be creative moves like that that will allow Netflix to hang on to its customers.
That said, this is a big deal for Amazon's Prime, and there's good reason for Netflix investors to be concerned today.
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Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool’s disclosure policy prefers dividends over a sharp stick in the eye.
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