I feel like the below article makes some really good points about the many risks that exist when buying Netflix (NFLX) at current prices. While I like the product and find it a reasonable value, I don’t love the business model of constantly having to acquire and renegotiate content deals, while having questionable pricing power. The company is expanding internationally but can’t internally fund all of this growth so I’d argue that Netflix is highly reliant on a buoyant stock price to funds its expansion. This can create a vicious negative feedback loop if the company comes under pressure. Whenever I use Netflix, I’m always shocked at how little of the content interests me. You have to be careful when using this type of anecdotal evidence, but the reality is that I probably only watch one or two shows a month on the service. At higher prices, I’d be much less likely to initially sign up and retain the service and Netflix’s own success in online streaming, will cause programmings costs to ratchet drastically higher, so whether or not that profitability hits Netflix’s bottom line is very much unknown. At a reasonable price, I’d be a buyer because I do like the company and the service, but it is pure speculation at current levels.