I've said this before but anytime a stock is trading at an earnings multiple significantly higher or lower than average, the burdon of proof should fall on the person arguing for such a multiple.

Netflix is trading at a P/E of about 75. Right or wrong that should at least give an investor pause. There is a lot of success already baked into that price. At this type of multiple a company has to outperform already sky high expectations in order for an investor to make money(in a fully rational world). This is possible but it becomes increasingly difficult as that multiple expands.