The FCC voted 3-2 in favor of chairman Tom Wheeler's proposal which allows for ISPs to make pay-for-priority deals with content providers such as Netflix. The commission asked for comments on the proposal, but did not ask for comment on where pay-for-priority deals should be banned.
Netflix recently made deals with Comcast (CMCSA) and Verizon (VZ) to make its streaming service more reliable to the broadband providers' customers. The media steaming company has pushed for tougher net neutrality rules that would make those peering deals unnecessary.
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TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."