Is the Netflix Resurrection an Illusion?

By Doug Ehrman – Jun 12, 2013 at 7:46PM

NASDAQ: NFLX

Netflix

Market Cap

$250B

Today's Change

(-3.92%) -$22.63

Current Price

$555.12

Price as of April 24, 2024, 4:00 p.m. ET

While Netflix has been on a tear of late, these are some warnings signs that you should be considering before following the crowd into this stock.

Despite being up by nearly 140% this year, there are several warning signs surrounding Netflix (NFLX -3.92%) that should not be overlooked. The company recently lost a chunk of kids' programming from Viacom (NASDAQ: VIA) to Amazon.com (AMZN -1.64%). Downton Abbey was poached as well. While CEO Reed Hasting seems content with the replacement content Netflix will get from Disney (DIS 0.18%), the long-term ramifications of content in streaming video should not be overlooked, either.

In the video below, Fool.com contributor Doug Ehrman discusses several reasons why Netflix's return to prominence should not be seen as the whole story and why investors need to be careful from here.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com, Netflix, and Walt Disney. 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.