Despite the main market building gains across the morning, Netflix (NFLX) was notably weak, despite what were very reasonable earnings. NFLX settled a rather significant -4.6% @ $431. There looks to be very strong support in the $400s in August.
First, to be clear, NFLX is one of the last stocks I would be getting involved in. Yes, it is profitable, and yes..it has a good customer base. Yet, it is one of the hysteria/momo stocks, and I steer well clear of those.
Earnings were unquestionably reasonable, but not surprisingly Mr Market has used it as a 'sell the news' event.
NFLX will no doubt find support in the immediate term at the 50 day...or worse case... in early August..the 200 day MA. A break under the $400 threshold looks somewhat unlikely.. not least since the sp'500 has a fair chance of breaking the giant 2000 level within the near term.
If you believe in the sp'2100s later this year/early 2015, then NFLX has a high probability of battling to the big $500 level.