The Netflix Graveyard is Littered With Tombstones of Short Sellers


The news from Netflix this week regarding their increased subscription costs has received tremendous backlash from users. Meanwhile, the stock continues to display tremendous strength, proving that fundamental and technical analysis matters – except when it doesn’t.

@williamsmith shared this chart of $NFLX on today suggesting if a bearish drop happens it, there’s a lot of room between here and its longer term moving averages.

While this is true, there has been a ton of money lost on the short side in this name over the past couple of years and I’m not sure I want to be the hero here. Better to wait on a real catalyst.

A wide range of thoughts from the StockTwits Community:

MOFinancial: People have been talking about the $NFLX multiple for a year now & shorts have been annihilated.

tradeticket$NFLX price increases: I Never used Netflix and as long as there’s this thing called Torrent….I likely won’t ever use Netflix.

Lightman$NFLX Compared to costs of taking family to movie theater or adding the movie channels to cable, $NFLX still a pretty decent deal IMHO.

bgfalcon91$NFLX Expecting big fade into the close. No rationale investor buys at these levels.


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