NEW YORK ( TheStreet) -- Netflix (NFLX - Get Report) shares gained 1.34% to reach $65.70 in premarket trading on Wednesday as investors responded to the company's plan to build its own content delivery network.
Netflix, based in Los Gatos, Calif., announced the Open Connect Network in a blog post on Monday.
"The world's other major Internet video provider, YouTube, has long had its own content delivery network," explained Ken Florance, the company's vice president of content delivery. "Given our size and growth, it now makes economic sense for Netflix to have one as well."
Netflix will continue working with its content delivery partners for the next few years, but eventually most of its data will be delivered by Open Connect, according to Florance.The news hammered shares of content delivery specialists Limelight Networks (LLNW - Get Report) and Akamai (AKAM), which plunged 12.59% and 3.24%, respectively, on Tuesday. Newly public Facebook (FB - Get Report) was once again one of the most active Nasdaq stocks in premarket trading on share volume of 303,089. Facebook shares, which hit a new low of $25.75 on Tuesday, rose 1.12% to $26.16 before market open. Database giant Oracle (ORCL - Get Report), which announced its acquisition of privately held cloud specialist Collective Intellect on Tuesday, rose 1.22% to $27.03 in premarket trading. The terms of the agreement weren't disclosed. Shares of HP, which is embroiled in a high-profile breach of contract lawsuit against Oracle, crept up 0.88% to $21.87. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.