Netflix Q4 User Growth Slows; Lower Forecast Could Mean Trouble
I'm a big fan of the content that Netflix (NASDAQ: NFLX) puts out. I'm a fan of the service in general. I'm not, and have not been, a fan of the stock.
Despite its incredible run over the last decade, shares of the streaming giant are now priced at a rather high premium. The mounting pressure from new streaming competition from the likes of Disney (NYSE: DIS) is a direct obstacle to continued user growth.
Fourth-quarter earnings out late Tuesday showed year-over-year declines in new membership growth, continued weak cash flow, and a weaker forecast for first-quarter membership growth. On the positive side of the report, earnings did improve. But the stock is still priced very high.
Source Fool.com
