I recently read bit of news (link at end of entry) that questions whether Netflix, the instant movie and TV show streaming service, has reached its peak as of late. Netflix's stock "recently fell below the moving average for the last 30 and 50 days. That set off alarm bells for so-called momentum investors. 'They ride the charts and when a stock starts to lose momentum they move things around,' Janney Capital Markets’ Tony Wible says. Some also may have wondered whether Netflix might be nicked by Warner Bros’ quiet introduction of its WB Archives Instant, a streaming service for its old movies and TV shows. Major investor Carl Icahn dispelled one rumor, telling CNBC that he hasn’t been selling his shares."
My family just recently signed up for Netflix, and so far, I love it. However, it has been out for quite a while, and it is possible that the service has reached the majority of its audience as of late. Personally, I think the company may just be slowing down a bit. I doubt it will "fall from grace" anytime soon.
Do you think that Netflix is going to fall in terms of share price in the near future, or do you think this is just a small hiccup for the service?
All information, as well as the above image, taken from: http://www.deadline.com/2013/04/netflix-shares-hit-investors-worry-lost-momentum/
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