Get a load of this price action. Netflix (NFLX) finished Wednesday's session down 2% to $183.03. Volume was significantly above average. The 52-week high for the DVD-rental entity is $209.24 (as of this writing), so that represents something of a pullback for the shares.

Then, during the after-hours trading period and following the release of the fourth-quarter report, the stock shot higher by 10.4% to $202.10. It was back above the $200 level in no time. Netflix is nothing if not a fascinating equity to watch. I do a lot of wishing while watching this company: I wish that I had purchased the company either at the 52-week low of $48.56, or at least somewhere much lower than where the price currently resides.

U.S. stock futures are higher this morning, following President Barack Obama's State of the Union speech. Investors are awaiting earnings reports and a monetary policy announcement by the Federal Reserve. Futures on the Dow Jones Industrial Average gained 35 points to 11,957.00 and S&P 500 futures rose 5.60 points to 1,293.30. Nasdaq 100 futures climbed 9 points at 2,310.25.

The Dow Jones Industrial Average lost 3.33 points or less than 0.1% yesterday.

Data on December new-home sales will be released at 10 a.m. ET. The latest statement from the Fed is due at 2:15 p.m. ET.

While I'm not necessarily going to say you can't still buy Netflix (NFLX), I will say that I just can't get myself to send in an order at current levels. During Wednesday's after-hours session, the shares gained 9%, reaching $167.33 in reaction to the latest quarterly report. That's not far from the 52-week high of $174.40. I'm not sure where the stock will end up during Thursday's regular session, but I doubt I'll be changing my mind about the online movie-rental business.

The chart does look good, though, doesn't it? Some of the sections may be rocky, but for the most part, the equity has been extremely resilient and a great buy on pullbacks. And with the 52-week low set at $47.56, you know that a lot of the true believers have made some good money (at least on paper).

Netflix (NFLX) was hammered in Wednesday's after-hours session. It dropped 9% to $108.70. The second-quarter earnings report was the catalyst. What should an investor do now?

Well, that's a decision each individual must make for herself, but let me say that I've been cautious on this company. Too cautious at times, admittedly, but when a stock experiences the kind of run that this one has, how can you not be at least a little wary? The one-year chart shows the incredible euphoria surrounding the equity. Or, to put it in terms of a range, the 52-week low is $39.27 and the 52-week high is $127.96. See what I mean?

After losing more than 12% on Monday, Netflix (NASDAQ: NFLX) shares are down an additional 6% today, dropping to a new two-year low. Yesterday's plunge came as the company announced plans to reduce two of its monthly subscription plans by a dollar, dropping the most-popular $17.99 plan to $16.99 per month and reducing the single-disc $9.99 plan to $8.99. Good news for Netflix users, but potentially bad news for shareholders, as the move - at least initially - means a smaller bottom line.

Last night after the closing bell, the company reported second-quarter income of $26.6 million, or 37 cents per share, a 50% increase from the previous year. Revenue improved by 27% to $303.7 million. Excluding items, NFLX would have banked 31 cents per share, easily topping analysts' expectations of 23 cents. But for the first time in the company's eight-year history, the total number of subscribers dropped. At the second quarter's conclusion, Netflix had 6.74 million subscribers, a net loss of 55,000 in the three-month reporting period. The equity was quickly trading lower in after-hours activity.

Then today, Netflix subscribers (such as myself) awoke to find our beloved site offline. The company's home page -- an intuitive work of website engineering that allows users to rate recent returns, rearrange queues, and share reviews with fellow subscribers -- crashed at some point Monday evening and is, as of 2:15 p.m. Eastern time, still unavailable.

If you've been following the movie rental industry lately, you are well aware of the price war emerging between Blockbuster (NYSE: BBI) and Netflix (NASDAQ: NFLX). It should come as no surprise that Netflix disappointed Wall Street after the bell today.

Although Netflix reported higher net profits for the quarter, the company lost subscribers for the first time in the company's history. Its expectations for the future also terribly disappointed investors. The company said it expects to finish the year with between 6.8 million and 7.3 million subscribers vs. previous expectations of 7.3 million to 7.8 million. Netflix also cut its expectations for revenues and net income.

This disappointing earnings report comes on the heels of the company announcing price cuts to compete with Blockbuster's rental service. The price cuts alone managed to send the stock down 12% on the day, then the earnings announcement after the bell sent the stock down another 5%.

If you're an investor, I'd strongly advise against jumping into this sector. Naturally, companies engaged in a price war are destroying one another's margins, revenues, and the like -- factors that aren't attractive to owners. However, trading opportunities could evolve in the sector depending on expectations. For example, I know several smart traders betting on a second half rally in Blockbuster because they think the analysts' expectations are low for late this year into next year as a result of a weak second quarter.