Netflix Shares -4.8% Despite Cheers For Decision To Scrap Qwikster

Netflix Ditches Qwikster, Will Keep DVD Rentals at

Can Netflix executives do anything to rekindle Wall Street’s affection? It appears not, or at least not yet: Netflix was one of the media business’ few losers on Monday with shares falling 4.8% to $111.62. The decline stood out on a day when the benchmark S&P 500 was up 3.4%, and U.S. media stocks were up more than 4%. Traders soured quickly on Netflix after rewarding it with a 7% pop at the opening bell. They liked the fact that Netflix abandoned its plan to split its DVD rental business into a separate operation called Qwikster. But the flip-flop seemed to reinforce concerns that CEO Reed Hastings has lost his sense of direction. Netflix has lost nearly 63% of its value since mid-July when it announced that consumers would have to pay 60% more to continue receiving its service that offered DVD rentals as well as video streaming.

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