Netflix Stocks Plunge Following The Company’s Price Increase Debacle

Netflix Chief Executive Officer, Reed Hastings, apologized to outraged customers following the company’s price increase debacle. Does he have to make amends with Netflix investors too?

Shares of Netflix fell 19% Thursday and another 8% Friday just after the company cut its guidance for subscribers within the U.S. The stock, which had been one of Wall Street’s hottest this year until Netflix presented the price increase in July, has decreased more than 50% from its 52-week high.

Hastings tried to end the conflict by announcing that going forward, Netflix’s DVD and streaming businesses will be separate. The mail order DVD unit is being awkwardly renamed Qwikster.

Netflix rebounded slightly Monday morning on the Qwikster news, but wound up plunging again in late trading as the broader stock market declined on more Europe fears. Netflix finished Monday down over 7%.

So it looks like the birth of Qwikster and Hastings’ mea culpa aren’t putting an end to the company’s issues just yet.

 

 

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