The Biggest Mistake Netflix Bears Are Making

Netflix (NASDAQ: NFLX) has been one of the best-performing stocks of the last decade, returning 2,400% as the company has successfully transitioned from DVDs by mail to a streaming giant. Nonetheless, it's had its fair share of detractors along the way, and their complaints are familiar at this point.

Bears have long argued that Netflix's streaming advantage will eventually be eroded by new competition, which will steal market share as they make streaming a priority. In the same line of reasoning, they tend to believe that most of Netflix's original content is mediocre, implying that the leading streamer isn't even particularly good at what it does and that it would easily be surpassed by a dedicated competitor.

Netflix has faced a wave of new streaming competition in the U.S. as services like Disney+, Apple+, Comcast's Peacock, and AT&T's HBOMax have all come on the market in the past year. There are signs that Netflix has ceded market share as it encounters new competition, though it's still the biggest piece in what is an ever-growing pie.

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Source Fool.com