Some great news for NetFlix this morning (via Briefing.com):
07:30 NFLX Netflix: On website, Wal-Mart says to discontinue its current DVD Rentals service... points customers to NFLX!-Update- See 7:29 comment.
07:29 NFLX Netflix: Wal-Mart teams up with Netflix (15.50 )
Wal-Mart posted the following page on their website: "Great opportunity for current members of Wal-Mart DVD Rentals! Through June 16, 2005, you can sign up with Netflix and get all the Netflix benefits for the same rate you now pay at Wal-Mart!... If You Do Not Sign Up With Netflix After June 16, 2005, Wal-Mart will discontinue its current DVD Rentals service. If you are a Wal-Mart DVD Rentals member and do not sign up with Netflix, you can continue to use Wal-Mart DVD Rentals until 11:59 p.m. (PT), Thursday, June 16, 2005. After that time, your Wal-Mart DVD Rentals membership will end."
I'll bet Wal-Mart never thought it would come to this when they entered the DVD rental business. As many of you know I've been a customer and fan of NetFlix for a long time now. This is not a comment on the stock, especially not after the recent run, but I'm glad to see the competitive landscape getting better for them. I think it was just yesterday that Blockbuster said they were raising their prices to match NetFlix. It's looking like the winner in online DVD rentals is clear. (Of course, now that I've written this Amazon will come in and crush everybody...)
Update: Whoa! I just fired up my trading sytem and I see that NFLX is trading over 20. Funny that yesterday Duru and I were commenting on the stock's recent rally saying that we thought it was too extended to jump in. I'm sure many a short was thinking the same...
07:49 NFLX Netflix trades up 31% in pre-market on Wal-Mart news and short-covering; approx. 40% of float sold short (15.50 )08:00 NFLX Netflix stalls near $20 resistance zone in pre-market, an area that may attract shorts; needs to clear zone in order to keep momentum intact (15.50 )
-Update- NFLX currently trading at $19.90 in pre-market.
This one's gonna be fun today!
WOW! What a turn-around in prospects. And imagine how I dogged them so. Anyone who can take Walmart out of the game deserves kudos...