Just So I Have This Right…

Netflix (NFLX) increased the top end of its full-year guidance by 13 cents per share, and the stock responded by rising 1,500 cents per share. That’s a marginal P/E Ratio of…OMG…and it comes on top of an already richly valued stock.
I admit I was wrong today and offer my congratulations to the longs. Admitting your errors is important. I haven’t changed my outlook. I still believe Netflix is a Strong Sell and now, only more so.
There’s an important lesson here and that it’s hard to argue with an irrational mob. Under the Deep Market Truths I posted recently, I wrote “a trend can last much longer than you thought possible.”

Posted by Eddy Elfenbein on April 22nd, 2010 at 2:21 pm

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