1 Key Metric Every Netflix Investor Should See
The streaming wars are heating up, and a few services are emerging ahead of the pack. Netflix (NASDAQ: NFLX) has consistently remained the top dog in this race, and it is likely to maintain its position thanks to its pivot to original content. Netflix is beginning to reap the rewards of its early investments and long-term focus, which are finally showing up in its widening operating margin.
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Netflix consistently tracks operating margin -- the percentage of its sales that it gets to keep as profit before it has to pay interest or taxes -- as a measure of how profitable its core business operations are. Higher operating margins could potentially lead to higher reinvestments in the business.
Source Fool.com
