Netflix, Inc. (NFLX) Best Performer On S&P 500 In May

Netflix, Inc. (NFLX) Best Performer On S&P 500 In May
NFLX Photo by Matt Perreault

Netflix, Inc. (NASDAQ:NFLX) stock has bounced 30% in May, becoming the best performer on the S&P 500 index for the month.  At present, the stock is trading around $415, compared to $322 per share on April 30th. Overall, the S&P 500 index is up less than 2% for the month.

Play Quizzes 4

Executives cashing in

Recently, Netflix General Counsel David A. Hyman sold 3,099 shares of Netflix, Inc. (NASDAQ:NFLX) stocks in a transaction dated on Friday, May 23rd. Hayman received a total of $1,239,600.00 for the sale. The general counsel still owns 5,230 shares in the company, valued at approximately $2,092,000 according to an SEC filing.

[Exclusive] ExodusPoint Is In The Green YTD Led By Rates And EM/ Macro Strategies

Invest ESG Leon CoopermanThe ExodusPoint Partners International Fund returned 0.36% for May, bringing its year-to-date return to 3.31% in a year that's been particularly challenging for most hedge funds, pushing many into the red. Macroeconomic factors continued to weigh on the market, resulting in significant intra-month volatility for May, although risk assets generally ended the month flat. Macro Read More

Reed Hastings, CEO of Netflix, Inc. (NASDAQ:NFLX), also sold off 15,238 shares of the company’s stock in an open market transaction, dated Tuesday May 27th. The stock was sold at an average price of $401.52, for a total transaction value of $6,118,361.76, according to a filing with SEC.

Recently, the online video streaming service has increased the subscription cost for new members in Canada and other countries by $1. However, this time the company did not replicate the situation when it raised the price by 60% last year and lost 800,000 subscribers. Users knew in advance that the price will rise from $7.99 to $8.99, so the impact was not as severe.

Netflix on expansion spree

Netflix, Inc. (NASDAQ:NFLX) will expand its service in European countries after gaining many subscribers in the United States. The European countries where Netflix is entering are Germany, Austria, Switzerland and Belgium. This would be the company’s biggest expansion since arriving in Europe. At present, the company has 48 million customers in more than 40 countries.

Entering into new territories will be challenging for Netflix, Inc. (NASDAQ:NFLX) as many new competitors have come onto the scene. These new entrants have made their mark in tmarkets where Netflix was absent. Netflix now has to compete with Canal Play in France and’s Prime Instant Video in Germany.

In these new countries, Netflix, Inc. (NASDAQ:NFLX) will also have to abide by strict rules, especially in France, where Netflix and others are restricted from showing films until three years after their debut in theaters. The company conveyed to its investors that its international division will likely not perform very well this year.

Updated on

Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at
Previous article Can Japanese Stocks Defy Sluggish Exports?
Next article Investing Using Price-to-Cashflow Ratio and Cashflow Yield (Backtests 1951 to 2013)

No posts to display