Netflix Continued

NFLX_Q

After looking at the quarterly reports, I think we can start to see why NFLX took a dive at the end of 2011. Not only is gross marginal profit decreasing slowly throughout the past quarters, but R&D, SGA, and marketing costs all start to increase. Netflix sees the first decreased net earnings by the third quarter of 2011, corresponding with the precipitous decline in their stock price.

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