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 -0.62%) 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 |
$12.2 billion |
Industry |
Internet retail |
Trailing-12-Month Revenue |
$3.8 billion |
Management |
Founder/Chairman/CEO Reed Hastings CFO David Wells |
Return on Capital (average, past 3 years) |
23.9% |
Cash/Debt |
$1.0 billion/$700 million |
Competitors |
Amazon.com Apple Comcast |
On CAPS, 21% of the 6,812 members who have rated Netflix believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star DJoshuaRubin, tapped Netflix as a particularly speculative selection:
Negative free cashflow and a model that depends on big media giving them content. Secretive about some debt. Might be a home run long haul, but there are big reasons to be nervous. Hard to imagine how this is the best place to put money with such gigantic question marks. Bizarre stock. ... Bottom line is -- no one has a clue how this will shake out. We only know that who ever guesses right -- GUESSES -- will crow about their predictive genius later.