Does in-your-face management yield returns? Netflix thinks so

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By Robbie Citrino for Kapitall.

Since the press started covering Reed Hastings's sometimes outrageous public pronouncements in 2012,  Netflix ( NFLX ) has been up almost 600%.

Hastings kicked off his tour of ridicule by denouncing Canada's poor bandwidth capabilities, seeking to avoid displeased Canadian customers by ironically comparing their access failures to "a human rights violation."

Next, they moved on to content providers including BBC and HBO ( TWX ) , who have been notoriously hard negotiators in media purchasing.

In an earnings call Hastings responded to a question about users sharing passwords, which the HBO CEO Plepler had said was not a major concern for the company.

"I guess Plepler … doesn't mind me then sharing his [Netflix] account information. So it's plepler@hbo.com and his password is 'netflix's bitch.'"

Again, the market seemed unfazed.

In recent months Netflix has moved on to attacking bigger fish, such as Amazon ( AMZN ) with this hilarious ad  expressing skepticism with some of Jeff Bezos' claims to the press;  Comcast ( CMCSA ) for being a monopoly ; and, most recently, Verizon ( VZ ) and AT&T ( T ) with specific warnings for when the carrier's network is at fault for poor playback.

Compared to the reserved Bezos, who has done nothing but focus on innovation and seen Amazon's market cap take a 25% cut in recent months, it appears that the in-your-face tactics employed at Netflix keep investors on edge and hungry for what is to come.

In fact, other companies with blunt and snappy CEOs (for instance,  Tesla [ TSLA ] , Ryanair [ RYAAY ] , and  Oracle [ ORCL ] ) have all faired very well in the past year, with stock gains averaging around 55%.

Can the combative ways of Hastings and others continue to produce or investors fall out of love with these stocks?

Click on the interactive chart to view data over time. 

1. Netflix, Inc. ( NFLX , Earnings , Analysts , Financials ): Provides subscription based Internet services for TV shows and movies in the United States and internationally. Market cap at $25.69B, most recent closing price at $423.21.

2. Tesla Motors, Inc. ( TSLA , Earnings , Analysts , Financials ): Designs, develops, manufactures, and sells electric vehicles and advanced electric vehicle powertrain components. Market cap at $25.73B, most recent closing price at $203.99.

3. Ryanair Holdings plc ( RYAAY , Earnings , Analysts , Financials ): Provides passenger airline services in Ireland, the United Kingdom, continental Europe, and Morocco. Market cap at $15.99B, most recent closing price at $58.05.

4. Oracle Corporation ( ORCL , Earnings , Analysts , Financials ): Develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. Market cap at $188.12B, most recent closing price at $41.70.

(List compiled by Robbie Citrino. Monthly returns sourced from Zacks Investment Research.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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