Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Netflix
So what: Oh, how the mighty have fallen. Netflix now expects to have 24 million subscribers at the end of the third quarter, down from a previous estimate of 25 million. What's more surprising is that the company's DVD-only subscription is expecting a paltry 2.2 million subscribers. Could this spell the end of Netflix's original business?
Now what: When a company like Netflix is on its high horse it seems like no one can beat it -- except itself. That was my argument when Netflix raised prices and I said it was time to unplug Netflix two months ago. Higher prices have forced customers to make choices about Netflix's value proposition and more people than expected think their dollars are better spent elsewhere.
I certainly don't see this as a good sign going forward and wouldn't want to be holding onto shares of Netflix as the stock continues to plummet. Are you holding onto your Netflix shares? Leave your comments on Netflix below.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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