This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Netflix Facebook Post Prompts SEC Probe: Hot Trends

Stocks in this article: NFLX CVC GOOG

NEW YORK ( TheStreet) -- Popular searches on the Internet include Netflix (NFLX) after a Facebook post by CEO Reed Hastings prompted an investigation by the Securities and Exchange Commission.

Netflix announced on Thursday via Facebook post, SEC filing and news release that Hastings and Netflix received a Wells Notice from the SEC pertaining to a post Hastings made on July 5. In that post, Hastings said Netflix customers were viewing more than 1 billion hours of video content per month. The posting was widely covered in the media and Netflix stock climbed 13% the same day.

Although that same information had been included in the company's blog the month before, Netflix never issued a formal press release or made a filing with the SEC disclosing it.

The Wells Notice received by Netflix said the agency will recommend regulators issue a cease-and-desist proceeding and/or bring a civil injunctive action for violation of its fair disclosure rules. Hastings, however, defended his actions. Hastings, who has 245,000 Facebook subscribers said, "We think posting to over 200,000 people is very public, especially because my subscribers are reporters and bloggers."

Hastings added, "We think the fact of one billion hours of viewing in June was not 'material' to investors." He also attributed the rise in Netflix's share price that day as driven by a positive Citigroup research report which had been released the evening before.

Cablevision (CVC) is trending as the cable operator said it would raise Internet prices by $5 in January.

Cablevision said all customers who have Internet service as part of their video or phone package will be subject to the higher price. The higher price represents an average hike of 3.2% for customers' monthly bills.

The company said prices for video and phone services as well as promotional packages will not be affected.

Cablevision said it has invested $140 million in improving its Internet services by adding hotspots and putting no caps on consumer usage. The company also said it has not raised its Internet prices in a decade.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs