Netflix Loses Half Its Value in Two Months
By now you’re aware that Netflix switched up their pricing structure, doubled the cost of streaming with DVD membership, and pissed a lot of their customers off in the process. CEO Reed Hastings cited increased costs for the move away from the dual membership, and the the outcry from consumers is mirroring that of investors. The stock has been in panic mode and selloff has run rampant since the new pricing structure was announced in July. Netflix recently put forth a sloppy effort at re-branding their DVD-only membership strangely changing the name and publicizing it as Qwikster, but neither Main Street nor Wall Street is buying. Since July 13th when Netflix stock reached an all time high, it has lost 50% of its value, falling from a hare under 300 to 150. Along with consumer dissatisfaction, Netflix has had to deal with the loss of a distribution deal with Starz which helped to secure the dubious position as the worst performer in the S&P 500 last week. Is this the end for Netflix or just a monstrous speed bump? Time will tell—weigh in below and let us know.