Trading Post July 17, 2026 Plus Netflix & What's Up with the VIX
Michael Burry
· Cassandra Unchained
· July 17, 2026 at 18:26
· ⏱ 1 min read
| Read on Substack ↗
Summary
Netflix stock has fallen sharply from its June 2025 peak of $134 to $74 after earnings, with the author highlighting the company's repeated changes to production expense amortization and heavy content spending as accounting quality concerns. The article implies that Netflix's long-term compounding may face headwinds from these structural issues, though no explicit trade recommendation or position is disclosed.
•Netflix closed at $74 on July 16, 2026, down from a peak of $134.15 on June 30, 2025.
•The stock fell dramatically after reporting earnings on July 16 after the close.
•Netflix has changed its amortization of production expense three times, indicating accounting complexity.
•Heavy spending on content and unusual accounting practices make the stock 'tricky' according to the author.
Read time1 min
Length761 chars
Categoryfinance
Ideas
Michael BurryFounder, Scion Asset Management; subject of The Big Short
Author notes Netflix changed amortization of production expense three times, and the stock declined dramatically after earnings, suggesting potential earnings quality issues and ongoing fundamental he
Author notes Netflix changed amortization of production expense three times, and the stock declined dramatically after earnings, suggesting potential earnings quality issues and ongoing fundamental headwinds that warrant caution.
Risk: Accounting changes could lead to future earnings volatility or restatements; content spending may pressure margins.