A deal with
to a seven-month high.
NFLX shares jumped close to 15% today after the company inked
a deal that will allow the video subscription service to run
Disney movies shortly after they're no longer in theaters. At
$86.82 a share, Netflix' stock closed at its highest level since
The multi-year Disney deal doesn't begin until 2016, but it is
clearly a coup for Netflix. Disney is the first major film studio
to sell its movie rights to Netflix. As of now, most studios sell
their post-theater rights to premium cable networks such as HBO,
Starz and Showtime.
Starz, in fact, owns the current rights to Disney. That deal
expires in 2015.
Netflix shares have now climbed 60% in a little over two
months, and have ripped off a furious 45% rally since a
disappointing third-quarter earnings report in late October.
saw this coming. In the October 26 edition of his increasingly
" series, Jason wrote the following:
"A move above $70 will signal that the shares are ready to
burst to a more formidable resistance level near $80. Should
the rebound rally this week portend a major bottom, the shares
could be on the way back to $105, or about 50% higher than
their recent price."
Sure enough, NFLX shares bounced from just under $70 - which
is where they were at the time of Jason's writing - to just under
$80 a share in matter of five days. Now they've broken the $80
Perhaps, as Jason forecast, the stock will reach $105. If it
does, credit Disney with the assist.