Netflix (NASDAQ:NFLX) has started the year in impressive fashion. So far this year, Netflix stock has run nearly 150%. While the company has served as a model for Amazon (NASDAQ:AMZN) Prime and Redbox Instant -- the joint venture between Coinstar and Verizon -- understanding the difference between Netflix stock and Netflix itself is important. Google (NASDAQ:GOOGL) just joined the paid video streaming business, but this should lead you to question the long-term viability of the business plan. If the company cannot grow revenue, eventually Netflix stock will be punished as well.
In the video below, Fool.com contributor Doug Ehrman discusses the video streaming industry, factors that will affect Netflix stock, and whether your investment dollars are better used in other places.
Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Google, and Netflix. The Motley Fool owns shares of Amazon.com, Google, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.