Netflix (NFLX) stock dropped 11% on Thursday, July 18, after the company reported its lowest quarterly subscriber growth numbers in three years, and its first domestic subscriber loss since 2011. These disappointing subscriber numbers show that Netflix's investment in original content has failed to deliver the sustainable competitive advantage required to justify its valuation. The loss of licensed content, increased competition, and higher prices in the future mean investors should expect more disappointing subscriber numbers going forward.
We think the stock will fall dramatically farther as more investors realize the company has no