If Netflix Can Keep Winning on This Key Metric, the Stock Could Soar

Shares of Netflix (NASDAQ: NFLX) soared almost 800% over the last decade, likely creating life-changing wealth for some shareholders. And this strong stock price performance was arguably primarily driven by impeccable performance on two key metrics: revenue and operating margin.While the company's still small yet fast-growing advertising business, steady membership growth, and occasional price increases should help the streaming pioneer keep growing its top line over time, there's less certainty about its ability to keep expanding its operating margin. For now, the company continues to forecast operating margin growth. But can the key profitability metric keep expanding steadily over the next decade, as it did over the last decade, or could it eventually max out given the intensely competitive entertainment landscape?A closer look at how the company has expanded its annual operating margin recently reveals a business that continues to find ways to squeeze more profit out of its model -- but how long can Netflix keep this up?Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool