Coinstar, Inc. (CSTR), Amazon.com, Inc. (AMZN): How Long Can Netflix, Inc. (NFLX) Keep Rising?

Can’t we all just get along?
Luckily for Netflix, CEO Reed Hastings recognizes the threat, saying last year that “Amazon is the best competitor we’ve ever faced.” Of course, that probably wasn’t much solace for Netflix investors two weeks ago, after Amazon.com, Inc. (NASDAQ:AMZN) announced that it had won the exclusive right to stream current and future seasons of the popular television show Downton Abbey beginning June 18.

For many, then, Amazon’s attractive value proposition seems simply unbeatable. And, in all honesty, I’ll probably end up subscribing to Amazon Prime once its Downton Abbey deal kicks in. Heck, my family has likely already purchased enough individual episodes of various shows from Amazon.com to justify paying for a full subscription, anyway.

Meanwhile, considering how often we also use Redbox kiosks to pick up the latest and greatest movies on Blu-ray, Redbox Instant could also prove a compelling value at $8 per month, especially since it includes four monthly rentals from its DVD kiosk locations.

But don’t think for a second that we’ll be ditching our Netflix, Inc. (NASDAQ:NFLX) subscription anytime in the near future; even if we were to subscribe to all three of the aforementioned services, it would still cost less than half of what we used to shell out for our old cable subscription. For now, though, Netflix has more than enough content to keep even the most determined couch potato happy for years. However, I’m especially looking forward to the fruits of Netflix’s recent Disney deal, with new titles from the House of Mouse to be available on the service beginning in 2016, including standard Disney animation films as well as titles from Pixar, Marvel, and (swoon) yet-to-be-created content from its newest subsidiary, Lucasfilm.

Six back, relax, and stay awhile
While Netflix, Inc. (NASDAQ:NFLX) may look ridiculously expensive on the surface, I think it may yet be able to grow into its valuation over the long haul, so I see no reason to close my long-standing “Outperform” CAPScall on the stock. In the end, despite trading near 52-week-highs amid fierce competition, I’m convinced that Netflix’s best days lie ahead.

The article How Long Can Netflix Keep Rising? originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com, Facebook, LeapFrog Enterprises, Netflix, and Walt Disney.

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