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netflix nflx stockI know there’s a lot of controversy about Netflix (NFLX), but here’s the question to ask yourself after a 300%-plus run this past year — what is the path of least resistance?

When you parse the company’s earnings, you see that NFLX barely generates any free cash flow while having $6 billion in off-balance sheet obligations. True, the company is building out its international operations, but at some point, they have to pay off. Meanwhile, content costs continue to skyrocket thanks to a feeding frenzy between cable companies, Amazon (AMZN) prime and others.

The model isn’t sustainable.

But even if you think it is, Netflix stock is more likely to go down than up. It’s the path of least resistance.

Article printed from InvestorPlace Media,

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