In my Buy or Bye? series, I take a popular stock, strip away all the hype, and let you know whether you should buy now, buy later or buy never.
Today’s video highlights a ruling player’s fall from grace in the war between streaming services.
Is the company headed toward defeat?
Although it has been a darling of tech investors over the years, media narratives have left a sour taste in investors’ mouths as phrases like “growth trap,” “borderline catastrophic” and “reckoning” have begun to circulate.
And it’s no wonder.
The company’s stock dropped more than 20% in after-hours trading following a disappointing fourth quarter earnings report.
This headline from CNBC says it all…
![[Company] plummets over 20%, its worst day since July 2012](https://s3.amazonaws.com/assets.oxfordclub.com/emails/images/Netflix+HL1.png)
But the stock has recently made headlines for other reasons…
Hope on the Horizon?
Hedge fund manager Bill Ackman disclosed that his firm Pershing Square Holdings (OTC: PSHZF) recently purchased more than 3.1 million shares of the company’s stock.
It was an investment of more than $1 billion.
Just take a look at what Variety published…
![[Company] Stock Gets Lift After Hedge-Fund Manager Bill Ackman Buys More Than $1 Billion Worth of Shares](https://s3.amazonaws.com/assets.oxfordclub.com/emails/images/Netflix+HL2.png)
Although Ackman’s investment has kept this streaming innovator on the battlefield, it is still down 30% since the start of the year – and is 39% off its all-time highs.
Is this current bout of weakness an opportunity to get into the company’s stock at a cheaper price?
Or is it time to wave the white flag?
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