With the broader market seeing a key break lower, Netflix (NFLX) saw a rather strong opening reversal (intra high $706.24), and settling -0.3% @ $678.93. The mid term trend remains bullish, but today's announcement of a 7 for 1 stock split.. along with Icahn revealing he has sold his remaining stake would make for a rather classic top.
*To be clear.. I am bullish NFLX across the longer term, but today's two coincident events would indeed make for a rather appropriate top.
In terms of downside, if the broader market sees a sig' correction in the late summer, NFLX could trade as low as the giant $500 level. Of course, with the stock split (7 for 1).. that will equate to around $71... so... I would be looking for 'best case' downside in the 75/70 zone by Sept/Oct.
*I generally have little interest in trading any of the momo stocks, but unlike many of the others - not least AMZN, TWTR, at least NFLX is set to generate a profit. Right now, I would consider a NFLX long into 2016, from the mid/low 70s.