Why Did Netflix Shares Continue To Rise On A Down Day For the Market?
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Several analysts are scratching their heads over today’s 6% gain in Netflix‘s stock price on a day when the Standard & Poor’s 500 fell 1.2% and the Dow Jones Industrial Average was down 0.9%. Could it be a reaction to the generally upbeat publicity surrounding House Of Cards, the streaming video company’s second original series which was introduced on Friday? Possibly, but not likely. There won’t be conventional ratings for the production, and it could be months before Netflix discloses whether it led to a meaningful bump in its subscriptions. (Until then, investors will be eager to see comScore’s next report showing how many visitors Netflix is attracting.) It’s “way too early to see how it plays out,” says Janney Capital Markets’ Tony Wible. He believes “you probably still have short covering going on” following Netflix’s January 23 report showing that its earnings and subscription numbers were far better than analysts expected for the last three months of 2012. The company’s stock is up about 78.7% since then.