I just initiated my first position on NFLX. I bought the Feb 210 puts. I do think the valuation is stretched, and I believe their product is a commodity, they will see price competition and supplier price increases. I also think the market is stretched. Hope to see a sell off after short squeeze and options expiration jmho
Any co. with large financial resources can do exactly what netflix does. It could be possible that they have built enough of a brand, and that they have clients that are "sticky" enough that they will continue to grow (and diverisfy the brand). I was a huge supporter of the co. in the past, just dont know that they can continue growth, nor that they can do it cost effectively(profitably). I did not make a big bet, and I am just screwing around with a trade. I will tell you I have been dead wrong about the stock for the past several months.
I love it when shorts get burned like this, I hope the SEC is watching the trading real close in case the shorts try an illegal bear raid to get their money back. They did it to DNDN a couple years ago and got away with it.