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I jumped in at $86 after hours, with only 100 shares. They just simply got decimated after hours, but it felt pretty overdone, especially with only losing 800k

I jumped in at $86 after hours, with only 100 shares. They just simply got decimated after hours, but it felt pretty overdone, especially with only losing 800k customers. Seems worth it to take a stab. That being said, the business model is doomed. They don't control the content, so they are essentially a technology company. Their technology is great, I had them for a few months, but unless they own the content they will continue to get gouged by content providers. It's a no-win situation for them.

powertower 15y ago
When a drop in stock price is disproportionate to the available news, then you can be sure that the real cause of that drop is due to major players and insiders getting out because they know more than the public does and more problems are about to come out.
- steve8918 15y ago
  I'll have to check my datafeed, but it doesn't seem like there was a disproportionately large amount of volume after hours. The major players and insiders don't get out after the earnings release, they get out weeks before during the distribution phase. Most after-hours action is algo-bots and retail investors. The real action starts tomorrow morning, so get your popcorn ready!
  - powertower 15y ago
    $300 down to $80 in a span of a couple of months on news of a known/expected 3-5% of users leaving, while profits are increased, I would say count as "disproportionately large". The way insiders work is like this... If they know they need to get out, but can't due to SEC insider rules (you can't sell a stock about to tank "just because", without getting in trouble later on), they take the first public opportunity to do so... On the release of any public bad news, that way their asses are covered.
- cpeterso 15y ago
  Catching a falling knife can be dangerous (literally or metaphorically).
  - jahmed 15y ago
    But catch it right and you dont need to wash it.. okay that didnt really make sense but I've been lucky with a few stocks that got heavily (over)sold in AH and gaped up significantly at the open. If you grabbed 500 shares of NFLX in AH and it opens at 91 that could be an easy $2500. Super high risk though YMMV.

powertower 15y ago

When a drop in stock price is disproportionate to the available news, then you can be sure that the real cause of that drop is due to major players and insiders getting out because they know more than the public does and more problems are about to come out.

steve8918 15y ago
I'll have to check my datafeed, but it doesn't seem like there was a disproportionately large amount of volume after hours. The major players and insiders don't get out after the earnings release, they get out weeks before during the distribution phase. Most after-hours action is algo-bots and retail investors. The real action starts tomorrow morning, so get your popcorn ready!
- powertower 15y ago
  $300 down to $80 in a span of a couple of months on news of a known/expected 3-5% of users leaving, while profits are increased, I would say count as "disproportionately large". The way insiders work is like this... If they know they need to get out, but can't due to SEC insider rules (you can't sell a stock about to tank "just because", without getting in trouble later on), they take the first public opportunity to do so... On the release of any public bad news, that way their asses are covered.
cpeterso 15y ago
Catching a falling knife can be dangerous (literally or metaphorically).
- jahmed 15y ago
  But catch it right and you dont need to wash it.. okay that didnt really make sense but I've been lucky with a few stocks that got heavily (over)sold in AH and gaped up significantly at the open. If you grabbed 500 shares of NFLX in AH and it opens at 91 that could be an easy $2500. Super high risk though YMMV.