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Netflix (NASDAQ:NFLX) shares have been on a huge run, and this stock has been one of the top performers for the first half of 2025. However, I think it has gone too far too fast, and that this could even be a blow
Netflix: This Is What A Blow Off Top Looks Like
Summary
- Netflix stock looks extremely overbought after a massive rally, trading far above key support levels and at a rich valuation.
- Growth drivers like the password crackdown have largely played out, and future growth faces headwinds from competition, saturation, and potential retaliatory tariff risks.
- Earnings growth is expected, but revenue growth is slowing, making Netflix vulnerable if margin expansion falters or market sentiment shifts.
- Given these risks and the frothy valuation, I believe Netflix is a strong sell now, but would reconsider if shares correct to key support levels.
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