Netflix: When It Rains, It Pours

EconMatters's picture

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MarcusLCrassus's picture

That chart says it all.  I wonder where the bottom is on this dog.  Supposedly their licensing costs are going to continue to skyrocket and they will also be losing some big name shows, but at the same time its already fallen so far.  But if they have to sell $200 million in stock every quarter just to be able to pay the bills they are in serious trouble. 

vipmoneymachine's picture

It is too dangerous to short this stock at this price, I see $100 before the end of the year, major short squeeze.

prains's picture

if you smoothed out the graph it could look like a really nice breast, thanks for that NFLX

pasttense's picture

"As recent as 4 months ago, Netflix was an almost $300 stock, but mostly due to a series of  strategy implementation blunders by the management, its stock has been on a serious downward spiral...

Netflix was never a legitimate almost $300 stock before its management blunders; it was just floating on air. back then. So if Netflix had never announced the price increase with the proposed dvd/streaming split the price still would have crashed. Why doesn't the OP understand this?

A Man without Qualities's picture

I never went anywhere near it myself, but it seemed obvious from the type of things being said that very few buyers were bothering to look at fundamentals, but simply relying on the greater fool theory.  I suspect most of the driver of the price jump from $200 was short squeeze and stock buy-backs.  This company was never generating enough free cash flow to warrant buying back stock as it did, but that's another story.

Amazing how soon the lessons from the NASDAQ bubble are forgotten - lets see what Amazon does in the next six months..

LawsofPhysics's picture

Buy low, sell high.  The song remains the same people.

b_thunder's picture

Who did NFLX "bought back" the shares from @ $250/share?   Their own CEO and other "insiders."

Who will be getting cheap options and will be buying NFLX shares when they bottom @ well  below $50/share?  The same insiders. 

Same as any other company, just looks more liek blatank corruption due to the stock's "high-flyer" status.