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Netflix Has Lost Half Its Value in Two Months
Netflix’s decision to raise prices and its ham-handed marketing of its new Qwikster DVD service has flopped with both consumers and investors.
The company’s stock was down another 7% at the close of the market Monday as sellers punished it for rebranding its DVD service and its odd approach of publicizing the move: In the tenth paragraph of a blog post by CEO Reed Hastings.
But the long-term view of Netflix’s stock is even more dire: The stock price is now 42% lower than it was in July, when Netflix first announced the new pricing plan (and down more than 50% from an all-time high reached on July 13).
Since then, Netflix has also lost a deal with Starz as Dish Network contemplates a rival service and expressed interest in buying Hulu, according to reports. As a result, Netflix’s share price continues to fall; last week it was the worst performer in the S&P 500.
The chart below details Netflix’s bummer of a summer. What do you think? Is Netflix this year’s Digg or does this just mean the stock’s a pretty good deal now? Let us know in the comments.
Source: mashable.com
The company’s stock was down another 7% at the close of the market Monday as sellers punished it for rebranding its DVD service and its odd approach of publicizing the move: In the tenth paragraph of a blog post by CEO Reed Hastings.
But the long-term view of Netflix’s stock is even more dire: The stock price is now 42% lower than it was in July, when Netflix first announced the new pricing plan (and down more than 50% from an all-time high reached on July 13).
Since then, Netflix has also lost a deal with Starz as Dish Network contemplates a rival service and expressed interest in buying Hulu, according to reports. As a result, Netflix’s share price continues to fall; last week it was the worst performer in the S&P 500.
The chart below details Netflix’s bummer of a summer. What do you think? Is Netflix this year’s Digg or does this just mean the stock’s a pretty good deal now? Let us know in the comments.
Source: mashable.com