A good indication that a company lacks a future: its business model is lampooned by The Onion, a satirical news parody site, in a video featuring it as a "historical attraction." Blockbuster (NYSE: BBI) meets that fate in the video below.
This video should be required viewing for anyone contemplating an investment in the company's stock. I know, the company is attempting to transform itself into another Netflix (NASDAQ: NFLX), but the reality is that Blockbuster has no particular competitive advantage there, and its weak financial position makes it unlikely that it will survive and thrive in a price war.
I've been bearish on Blockbuster for a long time, and I just don't see any reason to think things will turn around.
This video should be required viewing for anyone contemplating an investment in the company's stock. I know, the company is attempting to transform itself into another Netflix (NASDAQ: NFLX), but the reality is that Blockbuster has no particular competitive advantage there, and its weak financial position makes it unlikely that it will survive and thrive in a price war.
I've been bearish on Blockbuster for a long time, and I just don't see any reason to think things will turn around.
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