As a purely financial matter, Netflix's quarterly report should not have precipitated the absolute shellacking that the company's stock suffered after-hours Monday, wiping out about $1 billion in shareholder equity. The company's loss wasnt as bad as Wall Street expected, and while its second quarter projections were light, they were only just so. Thats why I think Netflixs 16% after-hours swoon is really being driven by emotional factors, as increasingly nervous shareholders seem to be losing patience with the companys stalling growth and rocky transition from DVD rentals to video streaming.

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