Now We Know Why Netflix Is Trying but Failing to Go on a Shopping Spree
Growth is about to hit a three-year low, but that's not the only reason why Netflix is hungry for nonorganic opportunities.
Overview
As the world's largest premium streaming service, it seemed odd to see Netflix (NASDAQ: NFLX) tied to so many potential content acquisitions over the past year. After Thursday afternoon's poorly received financial update, it's becoming clear that it is despair -- and not greed -- driving the push for non-organic growth.
Friday morning saw at least one analyst downgrade and eight price target reductions, even a couple of hours before the market opened. Netflix's second quarter wasn't great. Its near-term guidance was worse.
Details
Let's reassess Netflix's public and, in some cases, heavily rumored M&A activity in light of the platform's slowing growth.
Source
Originally published at www.fool.com.