Should You Really Buy Netflix Stock? Here's Why I'm Staying Away
It's safe to say that Netflix (NASDAQ: NFLX) has had better days. The large media business has seen its stock fall 59% in 2022, driven by a bearish overall market and shrinking subscriber base. Thanks to a post-pandemic lull, further exacerbated by an extremely competitive streaming environment, Netflix is dealing with growth problems that it isn't used to facing.
The slowdown is forcing the company to rein in costs, especially in an area that is of the utmost importance to its long-term success. And that's exactly why I'm not interested in buying shares of Netflix today.
In 2013, Netflix released House of Cards, one of its first original series. Before that debut, the streaming leader licensed content from other companies, but as those companies recognized the growing importance of streaming, they launched their own direct-to-consumer offerings, pulling their content from competing services in the process. Netflix has rightfully focused on original films and series, and it has spent a total of roughly $80 billion creating content from 2014 through 2021, an outlay that no doubt contributed to the company's dominance in the industry.
Source Fool.com
