What happens to BULLs when they see RED? Just look to NFLX and CSTR for today’s answer.
There is no arguing that Netflix, Inc.(NFLX) has been quite the BULL over the past few years.Yesterday, they announced that they would be hiking fees for their customers. What was the public response? No less than a firestorm of tweets and Facebook posts from the customers threatening to dump the service.Is Netflix, Inc. (NFLX)so confident in their customer base’s loyalty that they aren’t concerned about competition? (Think Coinstar!)
I might have expected the price to take a hit today, but that’s not at all what took place on the US stock market. Netflix, Inc.(NFLX) rose 2.5% on volume that was nearly 60% above the average daily volume.
Now look to the competition, REDbox, ticker symbol CSTR. Today’s price move was also an increase of 2.5%, with volume 300% above average! Will the Netflix fee hike help Coinstar Inc. (CSTR) break out of its trading range? Time will tell but today was a good start.
Tag: NFLX, CSTR