That doesn't mean you can't get a dead cat bounce. It also doesn't mean that the company is going to fold up tomorrow.
However, DVD's are going the way of the 8-track. It's a declining market (as Netflix recognizes). Streaming is the way of the future, but not using the Netflix business model.
Digital content owners want to retain control. The future is going to look more like a pay per view model (you pay for each movie either as a rental or for a higher fee, you buy the movie). The Studios know this and aren't going to sell their libraries to Netflix.