Netflix Stock Price
October 25, 2011 by staff
Netflix Stock Price, Four months ago, Netflix was the master of your domain. No other service provides the number of films, as well as the convenience of streaming for a low price. I had no real competitor – because they slaughtered the market. Over the past five years the popularity of Netflix led to the death of the video rental store. Blockbuster Video disappeared from the face of the earth and Hollywood Video vanished into thin air. Everyone made the transition to Netflix because it was cheaper and more convenient than its competitors.
For the past two years the entire property market. Hell, they basically had a monopoly on movie rentals. As investors saw their stock value has doubled and tripled, reaching more than 300 and a share in July 2009.
However, in July 2011 the company took a disastrous step that has led them into a pit of quicksand. In the middle of last summer executive decided to raise the price of transmission of the website and a DVD rental package for six dollars and 10 a and 16. At that time I personally do not think it was a great thing – that’s 24 / 4 per month. Netflix said the price increase was to help raise more money to deal with the greedy Hollywood studios the rights to broadcast films. Subscribers did not take the news well. More than 80,000 people complained about the decision Netflix page on Facebook. Initial projections showed Netflix lose up to two million subscribers disgruntled by rising prices.
To add insult to injury, Starz Entertainment – providing the streaming service with its popular new movies – ended its deal with Netflix in early September. And just when I thought that matters could not be worse – Qwikster announced. The news of the separation of DVDs and streaming services in different companies fully submitted by our customers and shareholders running for the hills.
On Monday, the company revealed that the damage was done. He told investors that closed the third quarter with 800,000 subscribers in the U.S. less than in the previous quarter, its first decline in years. The shares plunged more than 25 percent in after-hours trading.
Despite the decline in subscribers, the company did well financially in the quarter. It reported a net profit of 62.5 million and, or 1.16, per share, compared to 38 million, or 70 cents per share, in the same quarter last year. Revenue rose 49 percent to 822 million. Both revenue and earnings exceededanlysts’ expectations.
Despite the quarterly earnings, Netflix stock has continued to fall today and 11 am and NFLX has fallen 36 percent in value, trading at 75 and a share, its lowest level in 18 months.
In the course of four months has been a Netflix public relations nightmare that seems to be getting worse every time you wake up in the morning. According to the Wall Street Journal, the current downturn of the stock has “erase and $ 12 million market value of the company in just 104 days.”
Apparently, Netflix either forgot or did not seem to care about the old adage that the customer is always right. Now they are seeing billions of dollars disappear as competition of age.
Please feel free to send if you have any questions regarding this post , you can contact on
Disclaimer: The views expressed on this site are that of the authors and not necessarily that of U.S.S.POST.