One of the main reasons I don’t like to invest in technology companies or technology services anymore is that the next ‘big thing’ can come along and convince the consumer to switch brands.
An example is Netflix (NFLX).
Their Unique Selling Proposition is that they are an easy way to view a huge library of videos and you can watch on a variety of devices and you do not need to buy cable anymore at an affordable price.
What I see happening is that the telcos and cable companies are creating a better experience for video-on-demand and people are starting to see that the Netflix catalog consists of a variety of B-movies and lack in current new releases.
Companies like Google with YouTube, and Hulu, and the existing cable companies are planning to take back this market that Netflix captured the last few years.
Here is their current stock price over the last year:
If you notice how the stock had a resistance point at over the $300/share point and is slowly moving down.
How do you see this company moving forward?
I currently do not own any Netflix stock.