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ANALYSIS: Netflix misses sub growth

So here is the deal with #NFLX: I was wrong. They missed their own subscriber-growth guidance pretty badly, which shocked me. Perhaps I shouldn't have been surprised in retrospect, as NFLX occasionally guides too high, especially Q2.

Having said that, the business remains incredibly strong. They actually increased their margins. They still added ~5 million subs, just not the 6 people wanted.

Expectations just got too, and I got a little greedy. Anytime a stock has run as much as Netflix has in 2018, it's "priced for perfection". Any slip ups, especially with a high PE, make it vulnerable to a big pullback.

I sincerely apologize to anyone who is hurting in Netflix, but I really don't think you should panic and sell. I'm down about 4% on my position, which sucks, but not exactly a game changer if you're diversified.

Actionable summary: Don't panic. Just hold. Stock was down as much as 14% in after-hours yesterday and at the open. Now it's down about 8%. Let's let this play out.

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