I think people are missing the big picture on what happened... This is not that the market is giving up on Netflix. It's that most of Netflix's value is based

I think people are missing the big picture on what happened... This is not that the market is giving up on Netflix. It's that most of Netflix's value is based on an enormous increase in growth. Taking a look at their financials [0] their PE was 139 pre-announcement. It's still north of 100. Compare that with 27 of Google. Very high growth assumptions. Another way to look at it is they are still up ~250% over the past year and a half. When you're this highly priced, there is no room for mistakes or missing Wall Street expectations. One other note... There is a lot of hedge fund activity on Netflix, which can increase the immediate pop before or after a hit. That said... Speaking as a subscriber... I'm still paying, but I'm not using nearly as much as I used to, and I'm using Amazon Prime more and more. [0] https://www.google.com/finance?cid=672501 https://www.google.com/finance?cid=672501