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A Note From Stephanie Link

Tickers in this article: NFLX AMZN CSTR PG

And on RealMoney Pro: RealMoney Pro veteran Tim Collins explains his Netflix trade :

Netflix (NFLX) has a major issue. It has little original content, yet does not want to pay up for the content it needs. It's like a moody teenager who wants to borrow the car for a long weekend road trip who refuses to even fill the car with gas.

Worse yet, the teen wants your credit card to use as well during the weekend. Amazon (AMZN) has 33x the market cap, plenty more cash and a currency NFLX does not have (the stock) to use if desired to acquire content and sign deals. That is exactly what AMZN is doing. I won't argue that AMZN is fairly valued or undervalued here, but if they were smart then they would probably use what stock they could to acquire as much content as possible. Toss in the cable companies along with Coinstar (CSTR) and there just seems like very little reason to own NFLX right here. And for those arguing a takeover is possible, well of course it is, but I still don't see it happening unless NFLX is in the high $20s or low $30s, so it can get some sort of "premium." I say that word loosely since that price is a long fall from where NFLX currently sits. ( Continued)

-- Stephanie Link

Chief Investment Officer, Co-Portfolio Manager of Jim Cramer's Charitable Trust, and Director of Research at The Street. Stephanie performs all portfolio management functions which includes developing a macro outlook and market strategy, thorough analysis and careful stock selection while managing the fund in a manner that allows subscribers to follow and emulate her thoughts and actions. She also writes a weekly summary report of the portfolio, highlighting strategy, latest analysis and ranking of each stock in the fund. Stephanie promotes the product through weekly videos, both independently and with Jim Cramer, which are featured on The Street's website. As Chief Investment Officer, she oversees all premium content which includes RealMoney, RealMoney Pro, OptionsProfits as well as other premium newsletters including Breakout Stocks and Stocks Under $10. Stephanie is a CNBC contributor and regularly appears on Fast Money Halftime, Closing Bell, Squawk Box and The Kudlow Report.