Looks like the market reacted badly to the, I presume, after hours Q2 figures. If the company is struggling to hit anywhere near growth targets at this still early stage of the business, that does not bode well for the future.
It would appear that some analysts are giving the company a second chance. However, unlike the likes of Tesla which have nine lives, I don’t think Netflix will be afforded such a luxury in the future.
It will be interesting to see whether the market gives Netflix another chance to make good on recent underperformance. It looks as though the $380 level has been a problem in the past and is likely continue to be so for some time to come.
Netflix is profitable, although it has surprised on the downside lately, while Tesla is unprofitable - why is Netflix being hit so hard?
If the markets wobble again then I would expect Netflix to be hit hard. It will get oversold at one point but until we see an improvement in the profits trend it is going to be a high risk investment.
Decent rebound but I fear there is still more downside in the short term - too much uncertainty for my liking.
In my experience companies like Netflix, which depend on huge growth in subscriber numbers, rarely get a second chance when things start to go wrong.
Maybe the company will become a bid target at some stage - would it benefit from being part of a larger media company? In the absence of takeover speculation I think there is potential for further downside with this one.
Isnt it ironic that game changers like Netflix, Tesla and Uber change markets only for others to try and step over them and takeover. As they say, second to market tends to be more successful.