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Strategies & Market Trends : John Pitera's Market Laboratory

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Davy Crockett
John Pitera
To: John Pitera who wrote (18006)3/21/2016 4:04:00 PM
From: The Ox3 Recommendations  Read Replies (3) of 33421
 
I would avoid NFLX as an investment, since I believe that the way people are accessing their TV content is changing rapidly. NFLX was the right company at the right time. I'm not sure they'll be able to continue to be that same company going forward? Maybe.... but I view their risks as very high. Note that net income as a % of revenue was 2% in 2015.

AAPL's net income in 2015, as a % of revenue, is still higher than it was in 2013. Their ability to grow both the top and bottom lines, IMO, continues to be a very solid metric for the company. Net income at 22% of revenue shows a major reason why I would guess that AAPL is a much more solid choice over NFLX.
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