$7 billion in revenue seems very impressive indeed, which has doubled in just the last 3 years, but to buy a company for $42+ billion in market cap while it is losing nearly $1 billion and accelerating down steadily over the past year gives me a cramp in my stomach. It seems to me that the same logic that is omnipresent in investment circles for Tesla , which has similar issues in valuation and free cash flow, doesn't apply to Netflix .
I therefore think that NFLX has a reasonable chance at testing below $80 and as low as the low $60's before it becomes safer to own shares.
If you have never shorted a stock before in your life, then at least learn more about how it works and the risks involved. The old saying is surely true, that you can lose a lot more than you can make. Short selling is not for everyone, but you can also just sell call-spreads where you collect premiums from call buyers, but also hedge by protecting yourself from further crazy valuations. For example: You could sell the December 100 call options and buy the Dec 120 call options and this way you can define your risk to a maximum loss of $20 per spread (100 shares per contract), less the premiums you receive.
For the technician: There is a large double-top pattern at the $130 level and a long term that broke going back 3 years. The price pattern might also be a "head & shoulders top" but the point here is that NFLX peaked back in August nearly a year ago and is struggling here at a level that may stop further advances as old buyers cash out here at "breakeven".
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12:35AM EST June 6, 2016 99.59 last NFLX