Up 30,000% Since Its IPO, Is Netflix Done?
If you look at Netflix's (NASDAQ: NFLX) recent stock performance, you'd think the movie streamer's business is booming. Shares are up 24% in the past month and 62% over the past six months, and they've more than doubled from the lows they hit last May.
Yet revenue was meager in the fourth quarter, profits collapsed, and Netflix suffered its slowest year-ending subscriber growth in over a decade. That isn't a performance that should elicit such a riotous response in its stock. And now founder and CEO Reed Hastings is stepping aside to take on the role of executive chairman, marking the end of an era for the streamer.
Without question, Hastings made Netflix into an industry powerhouse, but this next phase comes at a turbulent time for media companies. Investors need to figure out if this changing of the guard will allow Netflix to return to a growth story -- or are the 30,000% gains since its IPO the best investors can hope for?
Source Fool.com
