Can Netflix executives do anything to rekindle Wall Street’s affection? It appears not, or at least not yet: Netflix was one of the media business’ few losers on Monday with shares falling 4.8% to $111.62. The decline stood out on a day when the benchmark S&P 500 was up 3.4%, and U.S. media stocks were up more than 4%. Traders soured quickly on Netflix after rewarding it with a 7% pop at the opening bell. They liked the fact that Netflix abandoned its plan to split its DVD rental business into a separate operation called Qwikster. But the flip-flop seemed to reinforce concerns that CEO Reed Hastings has lost his sense of direction. Netflix has lost nearly 63% of its value since mid-July when it announced that consumers would have to pay 60% more to continue receiving its service that offered DVD rentals as well as video streaming.
By DAVID LIEBERMAN, Financial Editor | Monday October 10, 2011 @ 4:50pm EDTTags: Netflix, Netflix CEO Reed Hastings, Qwikster, Reed Hastings
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This article was printed from http://www.deadline.com/2011/10/netflix-shares-4-8-despite-cheers-for-decision-to-scrap-qwikster/