Netflix Inc (NFLX)

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“The Walt Disney Company share gained (while NFLX fell) after the company said it plans to price its streaming service "substantially below" that of Netflix. The company said, however, that its service will be cheaper because it will initially have a smaller library than what the streaming giant offers. Disney said its goal is to attract as many subscribers as possible when it launches the service.”

The above is one example of competition Netflix faces next year while content producers demand higher prices from NFLX. Add to that coming increases in interest rates. Check out the likelihood of another,Fed interest rate hike in December. Add to all that the effect of the passage of a tax stimulus bill this late in the long economic recovery from the 2008 crisis. It's not the time to stimulate the economy (when it is coming out of the recovery) because that produces more inflation that the Fed is focused on containing with the interest rate increases. NFLX's strategy is based on borrowing more money to buy more content, etc. Low interest rates helped Netflix to do borrow, but it has too much debt now from from doing that. That cycle is not forever sustainable. All that borrowing has been fun for NFLX and its shareholders, but paying it back this late in the game with increased competition will be extremely painful.