Netflix Shares Hit As Investors Worry About Lost Momentum
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The stock is down about 5.7% this morning, apparently because a group of investors who follow technical metrics fear that the Netfllix rally has peaked. Shares are up more than 80% so far in 2013, mostly due to the disclosure in January that the streaming video company generated far more in earnings for last year’s Q4 than analysts expected. But Netflix’s stock price has plateaued over the last two months, and recently fell below the moving average for the last 30 and 50 days. That set off alarm bells for so-called momentum investors. “They ride the charts and when a stock starts to lose momentum they move things around,” Janney Capital Markets’ Tony Wible says. Some also may have wondered whether Netflix might be nicked by Warner Bros’ quiet introduction of its WB Archives Instant, a streaming service for its old movies and TV shows. Major investor Carl Icahn dispelled one rumor, telling CNBC that he hasn’t been selling his shares.