Comment Re:what am I missing? why is this so bad for netfl (Score 1) 325
It's not bad for Netflix. It's bad for their stock, though.
Stocks, especially non-dividend paying ones, are held on the idea that you can sell them for more tomorrow than you bought them for yesterday. So, it doesn't matter if they're still in good shape...can they grow any further? The assumption therefore is that they won't be getting bigger in the future. And if they're not getting bigger, then it's a hard sell to find some other sucker to buy your share of stock for more....because the only promise for that is that they'll keep growing and some *other* sucker will by your share from you. If the growth chain is broken, the stock is worthless if it doesn't pay dividends.
Netflix was trading on the idea that they would become ubiquitous. Once they took a subscriber hit, the graph changed, and all the analysts got off the train.