5 Red Flags for Netflix's Future

Netflix's (NASDAQ: NFLX) stock has lost nearly 48% of its value after hitting a record high of $700.99 per share last November. Roughly half of that two-month decline occurred in a single day after the streaming video giant posted its fourth-quarter earnings report on Jan. 20.

Netflix's headline numbers didn't initially seem that bad. Its revenue rose 16% year over year to $7.71 billion, matching analysts' expectations. Its earnings per share rose 12% to $1.33, beating estimates by $0.50. Unfortunately, a closer look at Netflix's earnings report reveals a few soft spots which spooked the bulls.

Let's review five of the red flags for Netflix's future -- and whether or not they'll prevent its stock from bouncing back.

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Source Fool.com