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.
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.
Half Moon Capital Returns 12.2% In 2020 Despite Short Position Drag
Eric DeLamarter's Half Moon Capital produced a return of 8% net of fees in the fourth quarter of 2020, bringing the full-year return to 12.2%, according to a copy of its fourth-quarter letter, which ValueWalk has been able to review. The fund maintained an average net exposure of 45% during the period. Q4 2020 hedge 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 Amazon.com’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.