This week has not been a good one for Netflix stock holders. Even though they beat estimates by 96 cents per share and increasing 65.7% from the prior-year quarter, late Monday Netflix also revealed to investors that it ended the third quarter of the year with 800,000 fewer subscribers in the United States than in the previous quarter. A huge exodus likely due to the company’s unpopular price increases and questionable business split decision. Investors pissed their pants and in after hours trading, the stock jumped off a cliff plummeting 27.8%.
Stock is trading nominally again but it doesn’t look like there’s going to be any huge bullish surge on this stock in the near term; although some are calling for a bounce back to the $120 range to test the stock’s 200-day moving average. If you’re one of those who lost their shirt on this sell-off I wouldn’t throw in the towel just yet.