Tags: netflix

Netflix Rises to Bring 2012 Gain to Over 40%

Monday, 09 Jan 2012 05:55 PM

 

Shares of Netflix Inc., the film-streaming and mail-order DVD service, rose the most in almost 12 months on Monday, bringing its gain for the new year to more than 40 percent.

Whitney Tilson, managing director of T2 Partners LLC, told CNBC Netflix was rising on buyout rumors and prospects for subscriber growth in its U.S. streaming business and internationally, including the U.K. service that started Monday. Tilson bought Netflix at around $77 after unwinding a bet the stock would decline last year.

Netflix, based in Los Gatos, California, gained 14 percent to $98.75 at 3:37 p.m. New York time after reaching $99.65, the biggest one-day gain since Jan. 27, 2011. The increase made the shares the biggest intraday advance among stocks in the S&P 500 index and followed 25 percent gain last week.

Chief Executive Officer Reed Hastings, in the U.K. for the debut of the company’s service there, said in an interview with PaidContent.org that the company was mostly over the transition from splitting its streaming and mail-order businesses into separate services. Streaming subscribers now constitute a majority of the customer base, he said.

The company is sticking to its forecast that subscriber growth turned up in December after falling for two months, PaidContent.org reported.

Netflix’s U.S. streaming business is likely to grow along with the overall industry rate of 30 percent to 40 percent, Tilson said. The international business will probably grow faster, he said.

© Copyright 2015 Bloomberg News. All rights reserved.

1Like our page
2Share
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
© Newsmax Media, Inc.
All Rights Reserved