Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, movie rental service Netflix (NFLX 0.43%) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Netflix and see what CAPS investors are saying about the stock right now.
Netflix facts
|
Headquarters (founded) |
Los Gatos, Calif. (1997) |
|
Market Cap |
$9.0 billion |
|
Industry |
Internet retail |
|
Trailing-12-Month Revenue |
$3.6 billion |
|
Management |
Founder/Chairman/CEO Reed Hastings CFO David Wells |
|
Return on Equity (average, past 3 years) |
38.9% |
|
Cash/Debt |
$748.1 million / $400.0 million |
|
Competitors |
Apple Comcast Amazon |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 19% of the 9,637 members who have rated Netflix believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star miclane05, tapped the stock's recent surge as particularly unsustainable:
[Netflix] might succeed in fending off hula, [C]omcast, and others, ink some long term content deals like the one with [D]isney, and be successful, but ... this stock has gotten way ahead of itself. This is not a high growth company and, at this P/E (or PEG) anything less than a grand slam will look like a loss. At this price, anything but the smallest position in a real-money portfolio is a pure gamble.
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