#3 - Netflix (NASDAQ:NFLX)
Netflix (NASDAQ: NFLX) - There’s been talk for a little while about problems with the streaming content provider. The streaming video space has become quite crowded and the path for Netflix to break through the clutter is by producing original content. But that comes at a high price. So even as the company projects a growth rate which would seem to support a high P/E (currently around 97), it is spending money on content creation. In 2018 alone, that bill could reach $13 billion. Investors are taking notice as the company’s balance sheet has shown a nearly 70% increase in their long-term debt load. But that doesn’t tell the whole story. Looming on the horizon is competition from Disney which will threaten the company’s leadership position in the space as it most assuredly will pull its content from Netflix in favor of its new creation Disney+. If Netflix drops to number two in the streaming video space, it will be nearly impossible for investors to reward it at a high multiple and a rising debt load. This may be the perfect time to follow the adage to sell high.
About Netflix
Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
Read More - Current Price
- $909.05
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 23 Buy Ratings, 10 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $807.70 (11.1% Downside)
