After being in the Wall Street equivalent of the wilderness for so long, Netflix has come roaring back since releasing some surprisingly good fourth quarter numbers. But will the good times last?
Netflix CEO Reed Hastings seems to know that it wouldn’t take much to send his company’s fortunes plunging back downward again. On Netflix’s recent earnings call, Hastings said the following:
“It wouldn’t take much to have the issue flare up again for us to lose trust . . . So you might say we are on probation at this point.”
Indeed, after several days of gains, Netflix shares dropped down nearly five percent today. Such a drop could mean that investors’ euphoria over Netflix’s recent earnings could be wearing off and cold reality may be setting back in.
What do you think, Insiders? Can we safely assume Netflix is back on the right track, or do these good times for the company come with an expiration date?