Netflix is betting billions on its original shows and movies — but this analyst warns it’s a far riskier gamble than investors realize (NFLX)
|04/20/2018||Posted by BusinessMediaguide.Com under General World News||
- The bull case for Netflix has a big flaw, argues Wedbush analyst Michael Pachter, a longtime skeptic of the company.
- Optimists think the company’s big investment in original content, which is sinking the company ever deeper in debt, will eventually pay off in lower costs, Pachter noted.
- But that argument ignores the fact that Netflix licenses the vast majority of its content, including nearly all of its most popular “originals” — and licensing fees just keep going up.
One of the central pillars of the bull case for Netflix may be resting on shaky grounds.
Investors and analysts backing the stock have based read more >>>