Netflix: The Good
Netflix has very decent growth potential, and I won't be surprised if the stock hits the $300 mark again. Some analysts are claiming that Netflix's good days are behind the company and that upcoming years will see a decline. However, the company's brand name is so huge that I just don't see it happening.
Netflix: The Bad
One of the reasons why some analysts don't see Netflix growing in the future is Amazon's entry into the market. Amazon is a far bigger brand name than Netflix, as it has a popular e-commerce division, along with a massive library of books. Even though Netflix has the most subscribers, Amazon is slowly getting there--it reached the 10 million mark last year.
oh and time warner who just entered the streaming business.NFLXis toast. Sure the industry is growing, but competition is growing as well. .29 eps a year? Plzt nflx can barely afford to pay for its content....
Another video streaming company started up today as well. Vdio, part of Rdio is offering streaming video. Spotify, Google, and Apple are all expected to offer streaming video this year also. There will probably be another 10 or 20 companies offering streaming video this year and next. 2013 the year of the Stream. Microsoft will probably offer it too. Probably be more video streamers than there are cable channels pretty soon. Carl Icahn will lose his shirt.