If you’re not already familiar with The Motley Fool, it’s a web-centered publication that deals mainly in stocks and stock tips and the like. They’re a very big deal in financial circles–almost like the Cyber Theater of the financial market. Okay, maybe I’m overstating our own importance a smidge, but they’re a big deal. So it should definitely come as a crushing blow–but not a huge surprise–to discover that Blockbuster is number six on The Motley Fool’s list of bad buys to close out the year.
In their article, Don’t Go Home With A Loser On New Year’s, The Motley Fool tackles ten companies that are likely to be obsolete or at least have their lunch eaten by competitors next year. Check out number six:
A few years ago, Blockbuster was going head-to-head with Netflix (Nasdaq: NFLX) for home-delivery domination. Now it has shuttered stores, maintains a paltry presence (at best) in mail subscriptions, and faces increased competition from Redbox’s $1 rentals. In the next decade, video streaming will be gaining steam. The company has too much ground to make up, and it’s hemorrhaging money. Blockbuster, please follow the lights and exit the theater.
Not sure I’m backing them a hundred percent on this score–you’ll note they’re pointedly avoiding or just not considering Blockbuster’s novel idea for download kiosks–but they’ve definitely got good points. It may be a good idea to stay out of Blockbuster stock until it bottoms out somewhere around, oh, a buck a share or so.