It keeps the scam going. The problem with the stock at $650 is that it harder for the banks to screw retail. If you invest 100k in Netflix that is only 153 shares ... but more importantly it is only 1 option contract to be sold against that position. If the price is $65, that is 1,538 shares, or the potential for 15 contracts to be sold against it. So, a 10-for-1 split leads to a 15-to-1 increase in option volume and $ value. The gain is in the option value and liquidity for the banks to rape us.
Amazing to watch these things develop .. RSI near 90 as final blast push leaving shorts trapped and are covering as fast as possible as margin calls arrive, and there is no one selling on bullish news. A 41 point move in 3 days on really nothing .. a final move that crushes remaining shorts, but leaves no real demand for the shares at the elevated faux price left from short collapse. Once shorts are done today (you can see the massive volume clearing them out this morning), only bagholders will be left.
This stock will drop huge over next couple of months as company performance cannot possibly meet stock price expectations (now trading at almost 7x revenue on razor thin margins, and negative FCF with only 20% revenue growth)
Stock is up 41% of last 90 days (447 - 632) while CY16 EPS has been cut 55% in same time period (5.47 - 3.53). P/E went from 82 90 days ago to 179 now. Lesson is -- spend everything you have to (borrow like crazy) to forecast growth. The investments don't even need to pay off ... doesn't matter, just keep spending for growth, and your stock will be rewarded.
Dolf - for once I agree with you. My point is that the type of quarter they have is irrelevant. The stock is completely disconnected from company performance. The stock price is managed by a few large funds/banks, and they decide which way it heads. retail investors can go along for the ride or get run over by them!