It has no infrastructure to deliver content and it has no content to deliver to customers. Both infrastructure and content are owned by someone else and they all love to squeeze nflx for moar money. On top of that you have formidable competitions closing in from left and right. So what is nflx but an on-line video store? The jig is up and it will be sold down, down, down until the pe is in the 20s.
All that logic and TA and Fundamentals and so does not apply to NFLX. Netflix has 44 mil customers and streaming in everybody's mind is associated with Netflix. I am not defending the stock valuations but the company will keep growing and they possibly will start offering ad supported programming or raise prices
I remember blockbuster used to have millions of customers and then nflx comes alone and the cost advantage of not having stores is enough to put blockbuster out of businesses. But that advantage is gone as it is quite simple for others to do the same. The point I am making is that without content and without infrastructure you have NOTHING as the biz eventually becomes a commodity service. Can they still make money, sure, and the stock is worth something, I suppose, it's just not at the current PE of 200.
I really doubt NFLX management is motivated enough to have contingency planned. All are sitting pretty having sold hundreds of millions of options the last few quarters. They have won their battle already. No moat, no carrot