Netflix Just Shared Some Big News With Investors. Here's Why It Makes the Stock a Buy

The streaming landscape was once dominated by Netflix (NASDAQ: NFLX), which arguably had a monopoly on the entire industry. In recent years, Netflix has seen a rising number of competing streaming platforms, namely from Disney, Alphabet, and niche players like Fubo.

To separate itself from the competition, Netflix has invested aggressively in original content. However, while this approach has reaped some benefits, it's clear that tougher decisions must be made if the company wants to acquire more subscribers and propel its top-line growth.

For several quarters, Netflix executives signaled to investors that it finally planned to crack down on password sharing. While one may argue that this could result in some short-term churn, the overarching thesis is that whatever churn Netflix may experience will be offset by a rising number of subscribers.

Continue reading

Source Fool.com