The Netflix Fall From the Top

le November 1, 2011

Within the past few months, Netflix has seemingly made a series of missteps. Raised prices, subscriber decline and a confusing attempt at spinning off its DVD business. What happened to its stock is quite stunning--and not in a good way.

Netflix has lost more than 50% of its value from the beginning of the year. Drag the filter to the company high-point back in July, and the stock has since lost more than an astonishing 70% of its value. Compare this with the NASDAQ, which until yesterday managed to eke growth of about 3% gain year-to-date.

All is not doom and gloom, of course. When Netflix first went public almost 10 years ago, it traded at less than $10 a share. Despite the stock plummet of the last few months, it's still trading at more than $80. That said, Netflix seemed unbeatable in the digital TV and film distribution space. The company may yet rebound, but it now seems that the door is open for its competitors.


I think these numbers show the power of the digital age. We know longer have to be in the dark about being ripped off.