Netflix was the best performing stock in the S&P 500 last year, up 298%. But, since hitting an all-time high of $458 on March 6, shares of the online streaming giant have plunged $83, or 18%. In fact, Netflix has closed lower in 18 of the last 21 trading sessions.
Enis Taner of riskreversal.com says this is a "classic case" of a momentum stock. "The price action itself is the news," he says. "Positive price action leads to more buyers, which leads to more positive price action. Lately, the reverse has been true."
But what has changed fundamentally in the last month? Chad Morganlander of Washington Crossing Advisors blames competitors like Apple and Amazon.
Investors fled the stock on Monday after reports surfaced that Apple was in talks with Comcast, the parent company of NBCUniversal, to start a new internet-based streaming service—a move that is stirring up fears of net neutrality and rising costs.
So, could rising competition mean the death of Netflix? Probably not.
(Read more: Apple and Comcast aim to update TV watching)
"I think that it's going to be a lot harder for them [the competition] to get into this business," says Morganlander, who maintains a price target of $450 for Netflix.
What's one thing that could change Netflix's fortunes? A takeover.
"We think that this company will perhaps be an acquisition target," says Morganlander. "Wouldn't it be better for Apple to acquire this company or Amazon to acquire this company?"
Will Netflix be the next takeover target for mega-tech companies like Apple and Amazon? Watch the video and make the call.