Netflix Inc (NFLX)

[sokol]

Yes, why? Expected quarterly earnings were 16 cents. Earnings failed expectations. Quarterly earnings were 15 cents! By the way, take a look at the PE ratio, although I know that's old fashioned consideration. The PE ratio is in outer space. What caused the surge was the subscriber base increased, but that subscriber base is fickle. You could see it suddenly fade away at some point. What has worked in the past, especially during a favorable market spurred on by QE, may not necessarily work in the future. QE has ended and the FED will be reducing the 4.3 trillion or so balance sheet as it has announced. Nothing goes on forever. However, if one thinks that is not the case and that what once works will always work, so be it. By the way, what ever happened to Blockbuster? Competition from Netflix and others put an end to the Blockbuster phase. Another time another story, and think about competition from the likes of Amazon now as well as new competition in the future. There is nothing more inviting to competition than success. Netflix has experienced great success, but success breeds competition. Nothing is constant except change and change continues as time marches on.