Fundamentals have not improved
However, if we look at Netflix's fundamentals, there is no reason for the stock to be logging significant gains this week. The company's flagship original series, House of Cards, was released last week, but Sandvine (a company that monitors Internet data usage) stated on Monday that Netflix saw no measurable increase in traffic since the release. Netflix is relying on House of Cards to drive subscriber growth, and spent $100 million to produce two seasons of the show. Unless Sandvine failed to adjust for the dampening effect of the Super Bowl on Netflix usage, this data point is ominous.
Come on people, think. Netflix acquires content cause they outbid Amazon and others. Winning those bids are okay until it's time to pay. Much of that content isn't even available for a few years.
And much of that debt is a footnote on the balance sheet, once it has to factored in it will be not be pretty. Bottom line this price is unsustainable.