3 Opportunities Every Netflix Investor Should Know About

Netflix needs to take some major steps to stay ahead of the competition. Here are what investors want to see them do.

Jim Mueller, CFA
Jim Mueller, CFA and Austin Smith
Dec 10, 2012 at 7:41PM
Consumer Goods

In the following video, Motley Fool analysts Austin Smith and Jim Mueller discuss Netflix (NASDAQ: NFLX). Jim, the author of the Fool's premium research report on Netflix, speaks about some of the company's biggest opportunities, including the following:

  • International growth. Netflix has recently moved into Canada, Latin America, Scandinavian countries, the U.K., and Ireland. It's expected to eventually move into India and the rest of Europe, but it's been careful not to overextend itself.
  • Partnerships. Netflix was able to outbid Starz for the rights to Disney content, a development that made it a serious player in the entertainment industry. With exclusive deals on content, Netflix has become similar to an online cable provider.
  • Carl Icahn. The activist investor thinks Netflix is doing a great job and that its cash flow is fantastic, and he's taken a nearly 10% position in the company. He's waiting to see how the company fares in the next two years, and then he'll decide whether he wants to make any changes.