Netflix (NFLX) is another company I really hate to include on this list because I consider management to be visionary, and I love their product.
Netflix has changed the way that all of us watch TV. You can have anything you want anytime you want, on demand. “Binging” a TV show is no longer the sign of social anxiety. It’s just what people do.
Other than for the occasional football game, I don’t really watch live TV anymore. I watch Netflix and a handful of other streaming services.
But while Netflix has revolutionized TV, revolutions have a way of getting out of hand. And Netflix may find its head in the guillotine next.
It ultimately comes down to content. Netflix makes quality original content, but most of what is available is licensed.
The Walt Disney Company (DIS) showed just how vulnerable Netflix is when it recently announced it would be yanking its content to launch its own streaming service. And well-financed competitors like Amazon.com (AMZN) are bidding for the same content with Netflix.
I don’t expect Netflix to have serious financial troubles any time soon. Its service is a bargain, and I don’t see many Americans cancelling it. But when the next bear market strikes, investors might start to wonder if Netflix’s sky-high valuation still makes sense.
SEE ALSO FROM KIPLINGER: 5 Stocks You Should Sell Now
Source: Kiplinger
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