NEW YORK (
(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
(LLNW - Get Report)
, which plunged 12.59% and 3.24%, respectively, on Tuesday.
(FB - Get Report)
was once again one of the most active
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.
(ORCL - Get Report)
, which announced its acquisition of privately held cloud specialist
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.
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