> Personally, I think the current Netflix stock crash has nothing to do with the subscription "loss" noise going around, and everything to do with the above (and other) competition.
I've seen this many times before.
The way it works is like this:
1. Insiders (both inside and outside the company, anyone with non-public information) known there are serious issues at play.
2. Insiders can't just start dumping shares (due to insider knowledge rules) without exposing themselves / future repercussions (SEC, lawsuits, prison time, etc).
3. Insiders wait for bullshit noise to go around... Such as a small fraction of users canceling subscriptions, Netflix raising prices, and media reporting that Netflix is now losing money even though they are making more now. Sometimes insiders create the noise via proxy (media contacts, websites, etc).
4. Insiders dump shares while pretending they are acting purely on "public information".
This is not something that happens once in a while, but almost 99% of the time.
Think of how many stocks have lost value due to bullshit news (a completely unproportionate response), and then a year later some real bad news comes out that finishes that company.
Red flag # 1 is unproportionate downward response of stock price on not-so-bad news.
I've seen this many times before.
The way it works is like this:
1. Insiders (both inside and outside the company, anyone with non-public information) known there are serious issues at play.
2. Insiders can't just start dumping shares (due to insider knowledge rules) without exposing themselves / future repercussions (SEC, lawsuits, prison time, etc).
3. Insiders wait for bullshit noise to go around... Such as a small fraction of users canceling subscriptions, Netflix raising prices, and media reporting that Netflix is now losing money even though they are making more now. Sometimes insiders create the noise via proxy (media contacts, websites, etc).
4. Insiders dump shares while pretending they are acting purely on "public information".
This is not something that happens once in a while, but almost 99% of the time.
Think of how many stocks have lost value due to bullshit news (a completely unproportionate response), and then a year later some real bad news comes out that finishes that company.
Red flag # 1 is unproportionate downward response of stock price on not-so-bad news.