Lol. U got to imagine the emotional swings of those that went long into earnings, saw the pop last night and said to themselves "oh yeah baby......here comes 400". The greed glands kick in and they hold into today. Then out of nowhere right back to reality. Bulls and bears make money, pigs get slaightered!
I wonder how much this drop today has to do with the CEO saying the stock is way overvalued... and saying this run up reminds him of the last time NFLX was over 300 and dropped to under 100 maybe without those comments the stock would be over 400 now?!?
Irrespective of if momentum investors are driving up the stock price being true (and the market determines what the value of a stock is), it was a stupid thing to say for the CEO. The same could be said of a stock going down like a rock... FYI, I have no position in this either way. And despite what the CEO has previously done for the company, this one statement was severly ill advised. When do you hear a senior officer of a company, let alone the CEO saying essentially that "our share price is too high"? Obviously the stock is going to get killed. Frankly I don't buy your excuses for this guy. His previous successes are not relavent to this. He single handedly errased 20% + of the stock's value in a single day. If you are a shareholder, you must be furious.
He has a fudiciary responsibility to his shareholders. That means speaking the truth and putting lipstick on the pig. Come on dude, are u kidding me? He did what he should have done. Musk should take a lesson from Hastings.
There's no doubt that the HFT and shorts came in and had a big hand in this move and a down grade came in, but dummy didn't help in basically saying: The stock price is to high. Guess what? It isn't now.
His fiduciary responsibility has nothing to do with his opinion on where the share price should be. He slaughtered his own stock for absolutely no good reason. Talking down your own share price = acting against your shareholders.
Hey, he's just being honest after all! <iframe width="560" height="315" src="//www.youtube.com/embed/7tWK0tW1fig" frameborder="0" allowfullscreen></iframe>