Netflix (NFLX), which currently trades at roughly 40 times forward earnings, a steep premium to the broader market and even many of its tech peers, faced an even sharper reaction. Shares fell 5% on Friday despite the streaming giant reporting a beat on both the top and bottom lines and raising its full-year guidance.
"An overall 'good' set of results and guide were not good enough for elevated expectations,” William Blair analyst Ralph Schackart wrote in a reaction to the Netflix report.
