Netflix Inc (NASDAQ:NFLX) was one of the most incredible growth stories of the decade which saw the company transform its business from a mail order DVD rental service to become a pioneer of the current streaming model. NFLX is up over 3,500% in the last 10-years cementing itself as one of the most important tech and media companies in the market. This year however has been defined by questions over the company's content strategy and trends in subscriber growth resulting in increasing volatility as shares are now down nearly 30% from its all-time high reached back in Q2 2018. The emergence of new streaming competition and a more competitive landscape have added to bearish sentiment towards Netflix particularly as it relates to its valuation which continues to command a high premium. This article covers why we see more downside for the stock in the year ahead.
The Bearish Case for Netflix
The following points summarize what has changed in 2019 and why its unlikely NFXL can reclaim its previous highs above $400.