”It’s a horror show,” says Joe Terranova.
”I see no reason to jump in,” adds Pete Najarian.
”I’ve never seen a cult stock break like this and regain momentum,” adds trader Dan Nathan.
Those were the knee-jerk reactions from the Fast Money pros as shares of Netflix plunged over 25% in extended trade after commentary made in conjunction with its earnings report spooked investors.
Although the results beat expectations, investors focused on a big fourth-quarter warning.
Specifically, the former high flier warned of continued steep declines in DVD subscribers this quarter and said a costly expansion into Britain and Ireland would push it into the red in the first quarter.
"We expect the costs of our entry into the UK and Ireland will push us to be unprofitable on a global basis; that is, domestic profits will not be large enough to both cover international investments and pay for global G&A and technology and development," CEO Reed Hastings said.
The commentary triggered chatter of another misstep just weeks after a recent price hike drove away hoards of customers.