Netflix CEO’s ‘Attaboy’ Lifts Shares, but Not Enough7/09/2012 12:01 AM Eastern
Netflix’s stock climbed 13.4% last Thursday
— after CEO Reed Hastings posted a pithy congrats to
his company for delivering more than 1 billion hours of
video to subs in June — but the shares were still well off
their 52-week high.
“We’ll blow these records away” once Netflix debuts an
exclusive season of Arrested Development and a remake
of the BBC’s House of Cards, Hastings bragged in a Facebook
The CEO’s enthusiastic status update drove Netflix
shares up, closing at $81.72 on July 5.
But a year ago, the stock was soaring above $300 per
share, hitting a peak of $304.79 on July 13, 2011.
Netflix’s stock price still hasn’t recovered from the major
hit it took after executives announced a decision to
split the DVD and streaming-video subcription plans,
in what amounted to a price hike on most customers —
erasing more than $10 billion in market value.
Last fall the stock fell to less than $70 per share after the
company in October announced a net loss of 800,000 U.S.
subscribers, before rebounding earlier this year to close
at $129.25 in February. Shares tumbled again this April
and bottomed out at $60.70 last month after Netflix said
growth would slow in the second quarter.
Netflix is scheduled to report Q2 2012 results on July 24.