The news will have to be bad to bring this down from the clouds. With Icahn holding most of the float out there, the computer trading can maintain the price easily in a given range. It will take some sort of bad news to drive a move with any sort of standard deviation. Until then, they will just suck the change from the options every day. Today's move was really interesting, I must say. Clearly, there was a lot of put buying yesterday, expecting a selloff after the fed. Those puts will all expire worthless now and the stock will close at either 180 or 185 tomm.
There is bad news on this every other day. You constantly hear about increased competition coming from obvious...and less obvious competitors. NFLX will not be able to fight the battle on all fronts and the competition will hurt them in 1) subscribers and 2) content costs.
This is going to happen both domestically and internationally.
We're talking about a low margin business for years as everyone fights over this space and has no pricing power. The deepest pockets will win. The question is....who has the staying power. NFLX could have it....but at the cost of massive liabilities or shareholder dilution.
How can anyone compete in a low margin business against a company that is the low cost provider with 35 million customers. The competition couldn't compete when Netflix fell flat on it's face and it had a much smaller customer base. Now with their customer base growing 40% Netflix has completely shut the window on the competition. The only way you beat Netflix is to buy them and that is why Icahn continues to hold.