Markets are up this morning, regaining a sense of certainty after deal-making proceeds in Saudi Arabia and the Trump presidency regains footing. As Keith explains on Fox Business Network, “…it’s going to create jobs because it creates demand… demand equals sales, which equal revenue, which equals profits, which equal higher stock prices. It’s a simple equation.” Also in the headlines this morning is the termination of Ford’s CEO Mark Fields, Sears on deathwatch, and the record-breaking SoftBank-Saudi Tech fund.
Netflix Inc. (NasdaqGS:NFLX), a stock we talk about frequently, recently completed) a $1.4 billion euro-denominated bond sale. Not surprisingly, millions of investors think this is a good move because it’s money that the company will (presumably) put towards new content development.
I’m not so sure that’s the case. More to the point, I believe savvy investors would be wise to put Netflix on a very short leash at the moment for three reasons I’d like to talk about today.
The devil, as they say, really is in the details.