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…
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…
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?
Click here to watch Nicholas’ latest video update.