So what: Spiking competition in the industry is one likely explanation for the sell-off. After all, Time Warner's HBO announced in early March that it is partnering with Apple to launch a rival subscription streaming product priced at $15 a month. Netflix's management has identified HBO as a key competitive threat, so investors have good reason to be nervous. Back in 2013, Content Chief Ted Sarandos told GQ magazine that the strategy behind original series like Orange is the New Black was "to become HBO faster than HBO can become us."
However, it's just as likely that Netflix shares are doing what they normally do: bounce around. The stock is extremely volatile, having risen by as much as 45% in the last year before retreating to its current 22% 52-week gain.
Now what: Investors are better served by tuning out those stock price swings and instead focusing on the business. Netflix has two important dates for shareholders to circle this month. First up is April 10, when the company launches its Marvel-character based Daredevil series. That's the first bit of exclusive Disney content to hit Netflix's services, with much more to come. Next, the company is scheduled to release first-quarter results after the market closes on April 15. Expectations are for the streaming giant to have added 4 million members, bringing its global subscriber footprint to over 61 million accounts.