Netflix Shares Jump 6 Percent In One Day -- But Why?
Netflix shares, arguably the most volatile among all media holdings, jumped 6 percent on Monday, leaving many analysts scratching their heads trying to figure out what had been the catalyst for the upsurge. True, the company did announce a deal with 20th Century Fox TV that will allow Netflix subscribers to watch an entire season of the sitcom New Girl just after each season ends. (The first season is available now.) But that hardly seemed to explain such a big leap. And, sure enough, shares in the company began dropping in early trading today (Tuesday). At midday they were down more than 2 percent. Some analysts suggested that this may simply be a case of the market correcting itself after overreacting to the mediocre critical and public reaction to the company's attempt to revive Arrested Development in May. Netflix stock has risen more than 200 percent over the past year.