The Netflix Fall From the Top

on 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.

Comments

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