Netflx(NFLX) is a stock that seems to have been on a reality T.V. show the past 6 months. When the stock crossed $300, it had a fight with it's reality mother... Unfortunately reality said, it doesn't deserve its lofty valuation. Not only that, it's Godfather decided to split the online and mail business, and raise prices. The stock dropped faster then a Paris Hilton Calorie Scale.
Now the Reality Script calls for the REBOUND. How does a company with 24.4 million subcribers, with a business model that says we are growing, have stock price that is 60% off it's high from the summer?
Thats an easy answer... it's from the non-believers who have shorted the stock to chit. Who are hell bent on driving the share price under $100. Must be unpleasant to fall asleep at night, knowing those shares you borrowed at $120, are available at $135. Well not yet, but that is the vision the wicked witch of the west is giving you.
But again that is the lesson you get when you underestimate the power of a company with a huge subscriber base...
We shall see what happens the rest of the week, but if history is any indicator of future results, NFLX is primed to head higher into friday.