Investors Miss This Key Fact About Netflix

The streaming sensation's debt offering isn't merely a refinancing.

Tim Beyers
Tim Beyers
Feb 12, 2013 at 6:30PM
Consumer Goods

Oh, how quickly fortunes can change in the great game of investing. Take Netflix (NASDAQ:NFLX), which is already up more than 90% year to date.

Multiple catalysts have forced the stock higher. The latest include a $500 million capital raise to refinance existing debt and purchase new content and news that the U.S. Postal Service is thinking of ending Saturday delivery. Both moves could save Netflix millions.

But is it enough? Amazon.com (NASDAQ:AMZN) recently convinced PBS to sell it exclusive streaming rights for the popular show "Downton Abbey." Sony (NYSE:SNE), meanwhile, decided to stick with streaming its feature films through Starz rather than switch to Netflix.

Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova looks at the numbers and argues that Netflix is better positioned than skeptics believe. Watch his full take in the video below, and then be sure to leave a comment to let us know what you think.