This company has a great business model. I'm adding this week. Once it stops going down it will rocket back up. This is a healthy correction of 10-15%. Google did a similar thing last week. Then when the shorts are all trying to cover at the same time there will be another violent move upwards. $250 here we come.
Once again, we have someone on this message board trying to compare GOOG to NFLX. There is no comparison and here are the reasons Google went down last week (Google was not an overhyped pumped stock last week).
Google announced earlier last week they were going to acquire a company called Groupon for $6 billion. As we all know, when a company announces a large M & A deal, generally, the company buying will experience a drop in the stock price. With the $6 billion acquisition announcement, traders took $8 billion of the valuation and capitalization of Google stock with the price per share down to $556. Investor sentiment was that $6 billion was too much to pay for Groupon, therefore the drop in stock price. Then, Groupon backed out of the deal and Google stock immediately started back up. In addition, there was a smaller announcement on the same day the Groupon acquisition was announced detailing the EU looking into Google's advertising practices. That was good for a $28 drop in one day. When Groupon backed out, that is when I bought back into GOOG (LEAPs) and also coincided that buy with the grabbing puts on NFLX.
There is no comparison to why Google's stock dropped last week and why NFLX's stock dropped last week. The drops (and two-day recovery) for Google were for M & A reasons, not because it was an over-hyped, over-pumped stock with no business model for a company that is a one-trick pony.