Netflix stock market run slowing down?

As an interesting article on Nasdaq by pointed out yesterday, for the first time since 2010/2011 there are some small question marks over Netflix in the stock market, and that despite the fact that the company “is currently expected to earn $1.52/share for the current year” (a 420% growth rate compared to the preceding period), “some cracks are starting to appear in the NFLX story.”

“The current forward PE is above 200, while the stock has just a Zacks Rank #3 (hold), and its Zacks Recommendation was recently downgraded to ‘neutral’. Netflix has also lost about $30 off its share price in the last five days, including a 5% slump in Tuesday trading alone,” writes”This recent tumble could suggest that the last new high in NFLX was the top for quite some time, and that some more poor trading could be ahead for the company. After all, we have been here before with Netflix, as the company saw a huge surge in early 2011, only to slump more than 70% in the final half of 2011. Could history be ready to repeat itself here?”

The writer does conclude on a positive note, however, conceding that, with its expansion plans and extensive revenues, Netflix’ incredible run mightn’t be over just yet…

Read the article here.

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