Netflix and Crocs.
NFLX: A stock that was once the darling of Wall Street a month or so ago now down more than 27% afterhours due to weak forecasts. This reminds me of a similar scenario that happened to Crocs Inc. (CROX) when their revenues started weakening, in part due to competition and overextension. This led to Crocs falling from around $70 per share to $3 per share before Crocs did some damage control and rebounded to $17.
Both Netflix and Crocs have carved out unique niches in their respective markets, and had seen their stock prices soar to stratospheric heights riding on a wave of bullish investor confidence. Both have faced/ are now facing increased competition and have been affected by a series of idiotic corporate moves to expand the company. Also, just as the reputation of Crocs started to falter under claims of product failure and the subsiding of overall appeal, Netflix has seen its reputation be completely tarnished by its price hikes and the failure of "Qwikster."
Of course, Netflix is still extremely profitable and unlike Crocs Inc, it has a much more sustainable product that, as of now, is still ahead of all the other competitors.
But Netflix needs to do some damage control.