Apple Watching Netflix, Hoping Stock Falls to $300

NEW YORK (TheStreet) -- The bottom continues to fall out of Netflix (NFLX). With Friday's close of $337.31, the shares are now down 8% year to date and are off more than 26% from their 52-week high of $458.

At one point it was inconceivable to suggest that Netflix would trade at a price of $300, much less predict $300 as a possible "bottom." Today it's a matter of "when" not "if."

With Wall Street's quarter-to-quarter obsession with growth, Netflix has fallen victim to an environment that Apple (AAPL) knows all too well; "all good things must come to an end." It sounds overly dramatic, I know. But drama is Netflix's bread and butter.

With Amazon's (AMZN) new Fire TV streaming device, along with Apple's new streaming deal with Comcast (CMCSA), Netflix CEO Reed Hasting has to figure out a way to stop this bleeding before his company becomes a comedy -- or worse, a tragedy.

Netflix investors are anxious. They want this market cap hemorrhaging to stop. But investors shouldn't blame Hasting for this.

Back in October, in a letter, Hastings warned investors that Netflix stock had become (in manner of speaking) a bubble. This was after the stock had surged roughly 400% in the preceding 12 months.

Beyond Netflix's own impressive performance, billionaire activist investor Carl Icahn has been a major catalyst in helping drive Netflix stock higher. Icahn took a 10% stake in the company 18 months ago at around $58 per share. It was valued at $323 million.

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