Thinking about buying Netflix Stock NFLX

When I am thinking about buying Netflix stock I am thinking about putting money into something I love and use every day. Buying this type of stock can be a bit risky because the competition is fierce just recently AT&T put together something similar called screen pack that is only $5. Now in looking at the number you will see that Netflix currently has around 25.1 million monthly users while AT&T U-Verse only has about 4.3 million users. I think that U-Verse is a quality product and have often thought about getting it installed but I will not leave Netflix for anything. I once made that mistake with Hulu which I didn't like.

Investing in Netflix is a move to make if you truly believe in the companies future. Right now their P/E Ratio is around 125.56 which is over 10 times what I would normally invest in. There could be money to be made but from a value prospective it's not within range. If you look at the numbers so many things stand out and let you know that long term this might not be the best investment. The forward P/E Ratio is 248.00 so almost twice as bad as now. The current Price to book is 7.69 so there are many factors that might make you think twice before buying.

This is more of a gamble than the stocks I normally invest in and without a dividend this stock is not for me at this price. I might consider it if the price were $45 per share but it's more than double that now. We all know about it getting right around $300 per share in 2011 but the past is the past. I never invest in stocks by looking at what they have done in the past. Thinking about investing in Netflix makes sense but depending on your affordable risk you might want to choose something else. All the investments you make are what makes your stock portfolio. If you have a part of your portfolio that you use for risky investments you might get some Netflix but I'd rather purchase Verizon stock instead.

Buying growth stocks is something that we all do and Netflix stock is a great stock if everything works out for it. Currently though I feel it is overpriced but that doesn't mean the price won't increase. Investing comes with ups and downs but it's always better to avoid risk whenever possible.