shares have been white-hot of late. A new movie deal is keeping
the stock scorching.
The Weinstein Co., one of the world's top movie studios, has
inked a multiyear licensing deal with Netflix. The deal begins in
2016, and will allow Netflix subscribers to view movies produced
by the Weinstein Co. and Dimension Films within months of their
News of Netflix's latest megadeal pushed shares up 4.5% today.
At $271, the stock is the highest it's been since July 2011 and
is fast approaching its $300 all-time high. Year-to-date, Netflix
shares are up more than 180% after entering 2013 at less than
The Weinstein deal comes on the heels of a similar agreement
the company signed with
last December. That deal also takes effect in 2016.
At the time, Disney was the first major film studio to sell
its rights to Netflix. Prior to that, film studios had only sold
their post-theater rights to premium cable networks such as HBO
Now it appears that the Disney deal wasn't a one-time coup,
but the start of a very encouraging trend if you're a Netflix
investor. If more studios sign on, it could open up a whole new
revenue stream for the video subscription service.
Should that happen, the company's earnings may eventually
warrant its lofty share price.