How Synchronized Viewing Could Ruin Netflix Stock

The king of streaming services, Netflix (NASDAQ: NFLX), has been a top-performing tech stock over the past decade. Its gain of 1,266% during that period far outpaces the S&P 500's 240% return. But share prices have stalled as of late, as the stock has not moved much in the past 12 months and is down 4% in 2021.

Netflix is becoming too big -- its market cap has already exceeded $220 billion. At that scale, innovation becomes harder to achieve, while the rise of competitors makes it easier for existing subscribers to flake. However, it's not just intense competition that is causing trouble.

A new practice is rapidly revolutionizing the streaming world that potentially has stock price implications. Let's look at why investors should be cautious about investing in Netflix.

Source Fool.com