Netflix stock drops dramatically


By now, everyone’s heard about the infamous Qwikster — Netflix’s new company that will focus on DVD rentals and possibly video games. The news of Netflix’s splitting of its conjoined twins, DVDs and instant online streaming, into separate companies has got a lot of people worried and upset, but possibly none more so than Netflix’s stockholders. Netflix stock has gone down over 10% today alone, and about 57% in the past two months.

This drop in stock value has been happening since Netflix announced its price hike, and then was exacerbated when Starz decided to pull its content from the streaming service. It remains to be seen if Qwikster ends up being a good idea or not for the company, though Netflix CEO Reed Hastings seems to think that this separation will help, saying that the company “will be better at streaming, and we will be better at DVD by mail.”

[Via The Hollywood Reporter]