Netflix's Entry Into Video Games Makes the Stock Riskier
Along with announcing its fiscal second-quarter earnings results on July 20, Netflix (NASDAQ: NFLX) confirmed it would be entering the gaming market. The company said it would start with mobile games and expand from there.
The streaming content pioneer has little experience with gaming. In fact, the closest it came to games so far is interactive content. Therefore, expanding into the gaming market may come with added risks to shareholders. Admittedly, there is plenty of upside to the decision as well. However, whenever you add uncertainty to a business, it also adds risk.
Image source: Netflix.
Source Fool.com
