Netflix Stock.

Netflix is one of the fastest growing companies in the world today. In the span of just a few years, the company has grown from a small startup to where they are today. After reporting earnings to Wall Street, the stock fell by almost fifteen percent. There are a lot of shareholders who are interested in investing in this stock after its fall. If investors look at the price to earnings ratio, which is a measurement used to determine the value of a stock, this is one of the most expensive stocks on the market.

However, investors need to look at the long term potential for this stock. There are several things that are going in favor of the company right now.

  • Growing Customer Base
  • Disney License
  • Streaming Technology

However, Netflix has had trouble impressing investors on Wall Street. There are a lot of people who think that the risk is simply too much to handle right now. If you are an investor who can deal with a lot of risk, this may be the stock for you. 

Buying the Dip.

Buying a stock is always a risk.

The great thing about Netflix is that it is a cultural phenomenon. "Netflix and Chill" is a phrase that almost all of the young people understand. Many people love to spend their days watching Netflix and relaxing with friends. With a dedicated customer base, this seems like a great time to buy into this growing company. If you are an investor, you need to buy into the company on something other than valuation.

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This is because Netflix is one of the most expensive stocks on the market as it relates to earnings. In addition, there are a couple of factors that could contribute to weaker growth in the future.

  • Increased Competition
  • Higher Prices
  • Increased Expenses
  • Lack of Innovation

Dealing with Competitors.

Now that the model has been set, there are a lot of things that people can do in order to steal market share way from the company.

Companies like Amazon are already investing heavily into streaming services. This could make a huge difference in the sales and profits that the company can earn in the future. With the recent price increase, many people decided to move their business away to another company. This is surprising to many people who follow the industry closely. The good News is that this is a great story for investors to watch in the coming months.

If you are OK with a high risk investment, Netflix may be the stock for you.

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