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The Netflix (NFLX) Breakdown

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November 29, 2011 – Comments (0) | RELATED TICKERS: NFLX

It's probably one of the biggest stories among individual stocks for 2011. A company that was breaking through $300 and on its way to $400, gets too comfortable in its own shoes, and instead of continuing to satisfy its existing customers and provide new and improved features, the CEO and his minions, out of the blue hikes prices on its one and only product (yes, NFLX is a one product company) by 60%.

But not only do they unexplainably increase their pricing in a price competitve market, they literally split the company in two among DVD rentals and online streaming, and creates a new name for half of the company called Qwikster, which is best represented by a pot-smoking Elmo.

And let's be honest who really thought NFLX would be at $70 at this time back in July? That's right, no one! But now that NFLX is below $70, we have to ask ourselves where does thing this thing bottom out at (I tried it once at $121 with some options, and boy was I fooled), and where does a good entry exist at?

Well then, let's breakdown NFLX.

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