Netflix Inc. (NFLX): International Expansion Won’t Move The Stock

International expansion will next year take Netflix, Inc. (NASDAQ:NFLX) to Australia and New Zealand as the company continues to feel the heat of more companies making a push for video streaming services. CNBC’s Timothy Seymour believes expansion costs could weigh in on the company’s performance going forward thus the reason to abstain from the stock at the moment.

Netflix, Inc. (NASDAQ:NFLX) stock has been stuck over the past few weeks with minimal movements as competition continues to heat up in the U.S.. In mid-October the company sunk with huge volumes a drop Guy Adami believes marked the perfect entry point for the stock, which has since rallied by a high of $60. Regardless of the New Zealand-Australia news, Adami believes the stock could still have risen up.

“The stock has been stuck at $380 for the last three weeks after a chance to bounce, international expansion very expensive multiple. Lots of competition, HBO going streaming that is what you worry about; I wouldn’t touch it, “said Mr. Seymour.

With over 53 million subscribers worldwide the latest wave of expansion will bring the total number of countries that Netflix, Inc. (NASDAQ:NFLX) serves to 50. The expansion drive has already seen the company offer its services in Europe having landed in Germany and France sometime in September.

Steve Grasso is the only Fast Money crew member that believes the expansion drive will further propel Netflix, Inc. (NASDAQ:NFLX) stock in the market.

“Seems like it is building a nice secure base right here I think it does bounce from $380,”said Mr. Grasso.

Netflix which is the pioneer of the video streaming business has opted to venture into new markets as one of the ways of gaining more subscribers as rising costs of rights to shows and movies continue to threaten profit margins. The company is also planning to offer high-definition, and the so-called 4K ultra high-definition programming where necessary.

Last month Netflix, Inc. (NASDAQ:NFLX) announced that its subscriber growth fell short of expectations a decline it would love to offset with international expansion.

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