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发帖数: 1972 | 1 http://finance.yahoo.com/blogs/daily-ticker/spectacular-collaps
In 2010 Netflix CEO Reed Hastings was named Fortune Magazine's Business
Person of the Year. How quickly things change.
After a year riddled with missteps and misfortunes, Hastings has quickly
fallen from grace with not only his customers, but his shareholders as well.
Netflix stock price dropped nearly 30% on Monday, falling below $100 per
share for the first time in 14 months. In mid-day trading Tuesday the stock
is down yet another 35% to $77.55. And that means, in the last five months
the stock has lost more than 60% of its value.
Here's why: Netflix announced Monday that it lost a shocking 800,000
customers last quarter after a couple of bungles in September. First,
Hastings said the company was raising prices nearly 60%. Then a few days
later he announced the company would split its DVD business from its
streaming business.
But the story doesn't end there. After days of outrage and criticism from
all corners, including the media, Hastings backpedaled, apologized and said
the company would remain as one. However, the price increases remain in
place.
"We became a symbol of the evil, greedy corporation," Hastings said Monday.
"Then we faced a reputational hit that created significantly more
cancellations than we anticipated."
In the accompany video, The Daily Ticker's Henry Blodget says its an
absolutely "spectacular collapse", one like he has never seen before. He
explains why the company has fallen on such hard times. |
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