It has been going for a long time, on fumes. Gross Margin per customer per month was down to $4.40 last call. This call, it will be even lower (and would be yet lower if they accounted for content costs properly).
NFLX is now up 50% from January. The pullbacks/selloffs are getting steeper and deeper because everyone playing the squeeze knows it could fall apart at any time and that the stocks is SO overvalued on a fundamental basis that the bottom would likely be 30-40% of today value.
I predict know that you will see some massive liquidations on options Fridays from now on. The conference call is coming in a few weeks and it cannot give any fundamental growth story to take it higher. It will sell off and badly and EVERYONE knows it. So, it will start selling this Friday in a MASSIVE way. Look for it to lose 30points between Wed close and earnings.