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What: Shares of Netflix (NAS: NFLX) have continued their recent steep slide and have been down by 10% today as analysts downgraded the video streamer amid a series of negative events that started last week.
So what: The stock has hit fresh 52-week lows and has pulled back by as much 58% from the all-time high of $304.79 set in July; Netflix hasn't seen levels this low since August 2010. The selling pressure over the past several days has been escalating and appears to have culminated today with the heaviest volume, topping 29 million shares traded so far before day's end.
Now what: The pessimism is mounting as Netflix faces harsh consumer backlash from its price hikes and questionable rebranding. Last week's announcement of reduced domestic subscriber targets triggered a cascade of worrisome news as investors shift their focus to the downsides. Additionally, an independent study concluded that 30% of Netflix users are planning on canceling their service or have seriously considered it. Netflix has some legitimate challenges to address going forward. Click here to keep up with all the recent Foolish coverage of this once high-flying darling.
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At the time thisarticle was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Netflix. Motley Fool newsletter services have recommended creating a bear put spread position in Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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