Sunday, January 30, 2022

Netflix CEO pounces, buys $20 million in shares as price flounders

What you need to know

  • Netflix's Reed Hastings has reportedly bought $20 million in shares in the company.
  • Shares in Netflix have taken a tumble following the announcement of subscriber growth numbers.
  • Netflix shares have fallen from $612 to just over $384 this weekend.

It's the perfect time to buy.

Netflix co-CEO and co-founder Reed Hastings has reportedly bought $20 million in shares at a time where the company has seen its price stutter.

With Netflix currently reeling from the response to recent subscriber growth figures, it has also seen its share price tumble. Despite beginning this month at more than $612, shares in Netflix fell as far as $384 this weekend. Hastings bagged his new shares at between $379 and $394 a piece, according to a new report by The Hollywood Reporter.

According to filings with the Securities and Exchange Commission Friday evening, Hastings purchased approximately $20 million worth of Netflix shares Thursday and Friday, paying between $379 and $393 for the privilege.

The purchase, made via a trust that Hastings controls, wasn't the only one of note. Hedge fund executive Bill Ackman bought more than $1 billion in shares earlier in the week.

While the obvious thought is that Hastings is picking up shares while they're going for a song, that only works out if he's also confident in the price's ability to bounce back. Hastings would likely know better than most where Netflix and its financials stand. Despite stiff competition from the likes of Disney + and the growing content library of Apple TV+, Netflix is still the go-to destination for people looking for great TV shows, movies, and documentaries. The company's recent expansion into games could also prove to be inspired, too.


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