The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.
John and David already have a small stake in Netflix in their real-money portfolio, and they intend to add to that position. The mood in the market for Netflix is very negative right now, understandably. Amazon.com recently cut a deal with Epix for content, which analysts say will push up the cost of content at Netflix. Google is making strides with YouTube, and even Apple might get more involved in streaming. But Netflix continues to make strides with its international expansion, and it still has the lion's share of users out there, along with all of the data on their viewing habits, which is very important. The stock price has come down recently, which presents an opportunity. John and David think the Netflix brand can carry it through this phase of its life. So buying a few more shares at lower prices should help their portfolio over the long run.
Netflix is no longer the darling of Wall Street it once was. But with a potential 600 million customers around the world, could it return to its former glory? Check out our premium report for both the bull and bear cases on Netflix. Just click here to start.
David Meier owns shares of Apple. John Reeves owns shares of Apple and Google. The Motley Fool owns shares of Apple, Amazon.com, Google, and Netflix. Motley Fool newsletter services recommend Amazon.com, Apple, Google, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.