STORY: The company's stock was down 36% in trading Wednesday, a day after Netflix said it would ask subscribers who share their accounts with people outside of their households to pay more. It blamed password sharing, in part, for failing to hit its subscriber growth targets.
The extent of the shared accounts -- estimated at 100 million around the world, including 30 million in the United States and Canada -- was a warning sign of its own.
"Netflix growth was so spectacular for so long... it was viewed of course as an internet high growth stock which it was. Now as Netflix is maturing, it is becoming more of a media company actually, and therefor more traditional media valuations are perhaps more justified on the stock," Nollen said.