We doubt that missing revenue forecasts by less than 1% is legitimate reason for hammering a stock, especially when its earnings beat by a fair amount. No, it looks more like the morning after an NFLX investor party. At the height of the party, it seemed as if the good times would go on forever, but now the alcohol has been metabolized and NFLX investors are figuring out how to sneak away quietly while their friend is still sleeping. A generation younger than mine calls it the “walk of shame.”
However, don’t put it past these investors to try to throw another NFLX party tomorrow. It is only a matter of time before the partying must stop.
http://blogs.wsj.com/marketbeat/2011/07/25/netflix-hammered-after-revenue-miss/?mod=yahoo_hs
