Why Netflix Soared on Tuesday


The following video is from Tuesday's MarketFoolery podcast, in which host Chris Hill, along with analysts Austin Smith and Joe Magyer, discuss the top business and investing stories.

In this segment, Netflix (NAS: NFLX) shares jumped up this afternoon, after an announcement that the company has come to an agreement with Disney (NYS: DIS) and bought the rights to show Disney movies shortly after they finish their run in the theaters. Our analysts discuss whether this could be a historic game-changer for Netflix, or whether it's a lot of market hype over a nice-looking headline, representing a deal we don't really know anything about yet.

The precipitous drop in Netflix shares since the summer of 2011 has caused many shareholders to lose hope. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why we've released a brand-new premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.

The article Why Netflix Soared on Tuesday originally appeared on Fool.com.

Austin Smith has no positions in the stocks mentioned above. Chris Hilland Joe Magyer own shares of Amazon.com. The Motley Fool owns shares of Amazon.com, Walt Disney, and Netflix. Motley Fool newsletter services recommend Akamai Technologies, Amazon.com, Walt Disney, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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