Buy Netflix? A Bull vs. Bear Debate With a Cautionary Tale...finance.yahoo.com/blogs/breakout

Buy Netflix? A Bull vs. Bear Debate With a Cautionary Tale

By Jeff Macke | Breakout

http://finance.yahoo.com/blogs/breakout/buy-netflix-bull-vs-bear-debate-cautionary-tale-145508779.html;_ylt=Ai36IHlQUduAVhcb81uXmC27YWsA;_ylu=X3oDMTE5ZXJqN2JxBHBvcwMzBHNlYwNGUEJyZWFrb3V0QmxvZwRzbGsDYnV5bmV0ZmxpeGFi

Netflix (NFLX) hasn't "disappointed" investors over the last four months. Apple (AAPL) disappointed, as did 3M (MMM). IBM (IBM) came in a little light. Even Amazon (AMZN), with earnings declining 73% on worse than expected revenues and a stock drop of 10%, is still within a standard deviation or two of what can be happen during earnings season.

What Netflix has done to shareholders is something entirely different. Netflix chained investors to the back fender of the company car and floored it. A price increase announced in July and an inexplicable plan to separate the DVD and streaming businesses in September, amongst other failings, had combined to drive NFLX stock down 60%.

All of which was prior to Monday's horror show of an earnings release. You can read the details almost anywhere. For our purposes let's just say it was a quarter that bespoke a company completely out of control of its own business and clueless as to how to right the ship. The market responded by taking yet another 36% out of the stock on more than 3x average volume.

All of which is in rearview. All investors should be concerned with now is whether or not the selling is "overdone" as they say on Wall Street. My co-host Matt Nesto and I explored the issue with an old fashioned Bull versus Bear debate.............

Related Quotes:

NFLX

 

79.40

 

+2.03 (+2.62%)

AAPL

 

400.60

 

+2.83 (+0.71%)

IBM

 

181.97

 

+1.61 (+0.89%)

AMZN

 

198.40

 

-28.75 (-12.66%)

MMM

 

77.02

 

-0.02 (-0.03%)

XLK

 

25.63

 

+0.11 (+0.43%)

QQQ

 

57.27

 

-0.07 (-0.12%)

http://finance.yahoo.com/blogs/breakout/buy-netflix-bull-vs-bear-debate-cautionary-tale-145508779.html;_ylt=Ai36IHlQUduAVhcb81uXmC27YWsA;_ylu=X3oDMTE5ZXJqN2JxBHBvcwMzBHNlYwNGUEJyZWFrb3V0QmxvZwRzbGsDYnV5bmV0ZmxpeGFi

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