Once again too much competition from Redbox, Google, Apple, Hulu, Walmart, Time Warner, Best Buy, Comcast, Dish Network, Direct TV, and even Blockbuster.
Streaming VOD (video On Demand) is great, but the profit margin is like zero, and Cable companies are giving away Streaming VOD as a FREE added on feature in their cable packages.
Netflixs DVD rent-by-mail is not the future. DVD Kiosks boxes are the future, and so is streaming, but the margins do not add up to a whole lot of profit. A $1.00 DVD rental is nothing, and Netflix's unlimited streaming is even cheaper.
The ride is over folks, that's why the CEO, CFO, and directors have all been selling into any moves upward.
Once again, I am not short. I owned NFLX at $60 and rode it up to $114 and then sold, but everything I am reading and seeing as far as new technology and some big cash companies entering the Streaming VOD field tells me Netflix is in trouble.
Profit margins on VOD is very minimum, and DVD rent-by-mail has gone to the wayside to REDBOX, and Blockbusters Kiosks (BLUEBOX) at $1.00 a rental.
Also, Netflix's may brag about having over 100,000 titles, but people only rent the top 100 most recent new releases. With AT&T cutting there unlimited Data package for the Iphone and Ipad, Netflix's new app is now useless.
I still like the stock, but definitely not at this price. If it corrects, I will re-enter, but it would have to correct at least 30% for me to do that. But...Hey, what do I know? I'm just an open-minded investor not wearing rosy glasses on every pipe dream stock.