Shares of the DVD-by-mail and streaming content company advanced $3.75, or 5.7%, to $70.12, closing above $70 for the first time since Nov. 22.
Netflix is a huge customer for the U.S. Postal Service, spending roughly $600 million annually, according to the Associated Press. The company is emphasizing its streaming business but still counted 13.93 million DVD-by-mail subscribers vs. 21.45 million streaming subscribers at the end of the third quarter.
If the Post Office moves do create consistently longer turnaround times for Netflix customers, it could lead to consumers either dropping the service or switching to streaming subscriptions. This time around, perhaps because Netflix shares are down 60% this year already, investors didn't scramble out of the stock on the news.Another factor could be that the Postal Service's proposed change for first-class delivery to a 2-to-3 day standard also comes with a caveat: "
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts