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 (NASDAQ:NFLX) 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

$10.2 billion


Internet retail

Trailing-12-Month Revenue

$3.6 billion


Founder/Chairman/CEO Reed Hastings

CFO David Wells

Return on Equity (average, past 3 years)



$748.1 million / $400.0 million




Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 20% of the 9,677 members who have rated Netflix believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star DJoshuaRubin, highlighted Netflix's valuation as particularly unsustainable:

Just wouldn't pay [$10 billion] for it if I had [$10 billion]. No chance, no way, no how. Not now, not never. Visionary no doubt, could end up being worth that. Service is a mediocre experience -- utterly competent but now uninspired. Maybe this is unfair and Reed adds back some authentic passion for the movie business after completing global infrastructure, but anyone who has ever watched a moving film, and is seated deep in thought only to have the credits rudely interrupted by three crappy film recommendations knows this is a CEO who is way more Bill Gates than Steve Jobs.

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