Do Not Buy Netflix

As published at ZachStocks:

Netflix shares have recently outperformed the general market (and most other stocks) as shares have rallied 150% from November lows. Stockholders to have reason to be enthusiastic, as subscribers, revenues, and earnings continue to grow, while some competitors (primarily Blockbuster) continue to weaken.

However, shares now trade at a premium multiple that may be too rich for the actual expected earnings growth. Zachary admits that shorting NFLX would be a very risky trade, but it may pay off richly as the current euphoria has inflated the shares beyond reasonable valuation.

The full article is available on ZachStocks: "Netflix: High Flyer or Falling Star"