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?

Not long ago, I wrote about Netflix (NFLX) hitting a 52-week high. At that time, the shares were around the $75 level. I cautioned that one had to be careful about buying an overbought stock. I mean, how much further could the equity climb?

Yeah, right. At the close of trading on Wednesday, the shares were priced at $86.98. The current 52-week high stands at $89.10 (as of this writing). And during yesterday's after-hours session, the stock climbed 1.6% to $88.40, in response to the first-quarter earnings report.

Blockbuster (NYSE: BBI) remains troubled. Just look at the second-quarter report that was released on Thursday after the bell. Net sales dropped over 20%, coming in at roughly $1 billion. The company lost 19 cents per share, one penny better than the loss reported in the year-ago period (to which I say, big deal!). According to the preview, the market wanted to see $1.1 billion for the top line and a loss of only 12 cents for the bottom line. A failure on both counts, I'm afraid.

Cash flow was the more attractive part of the Q2 story. The company calculated its free cash flow to be about $109 million. Okay, I'll give Blockbuster a good mark for having positive cash flow this year.