Why I’m Still Bearish on Netflix

Netflix (NASDAQ: NFLX) opened roughly 6% higher last Thursday after reporting a strong earnings beat in its third-quarter results. That bump has been followed by an 8.6% decline as investors worry about guidance. Overall, I'm still bearish: The tech giant's stock is overpriced, and guidance suggests a continued slowdown in membership growth. Competition should begin to erode its ability to get the same user gains as in the past.

Currently, the earnings do not justify the share price, and nothing in the third-quarter results eases investor concerns around cash flow, continued content expenses, and the rising competitive pressure. 

The quarter was a mix of solid earnings and missed targets on membership growth:

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Source Fool.com