The market is big on Netflix at the moment. In this video, however, Fool analyst Blake Bos offers three reasons to avoid this company. First, Netflix operates in a hypercompetitive market. Second, content costs will likely eat away at revenues. Third, Netflix trades at 100 times earnings and doesn't have the deep, wide moat or industry dominance that, say, Amazon does to justify that high a price. Further, Amazon has almost 10 times the free cash flow as Netflix and can easily throw its weight around in this market. Netflix, therefore, doesn't have the financial clout to directly compete with Amazon.

The relevant video segment can be found between 17:48 and 22:23.

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