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A Big Win for Reed Hastings and Netflix Stockholders

Chalk one up for Reed Hastings. Months after he posted what regulators considered material information for Netflix (NASDAQ: NFLX  ) stockholders to Facebook (NASDAQ: FB  ) , the Securities and Exchange Commission now says that such disclosures are legal.

Going forward, large-scale networks such as Facebook and Twitter will count as much as a press release when it comes to informing investors. You'd think that would be good news. Yet as of this writing, neither Facebook's nor Netflix's stock price has recovered from recent sell-offs.

But the real loser here is probably PR distribution services such as BusinessWire, a subsidiary of Warren Buffett's Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) , says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video.

Do you agree? Will you spend more time on social media searching for investment news? Please watch Tim's take and then leave a comment to let us know what you think of the SEC's ruling.

Thanks to the savvy of investing legend Warren Buffett, Berkshire Hathaway's book value per share has grown a mind-blowing 586,817% over the past 48 years. But with Buffett aging and Berkshire rapidly evolving, is this insurance conglomerate still a buy today? In The Motley Fool's premium report on the company, Berkshire expert Joe Magyer provides investors with key reasons to buy as well as important risks to watch out for. Click here now for instant access to Joe's take on Berkshire!

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  • Report this Comment On April 05, 2013, at 8:17 PM, ibuildthings wrote:

    Seems like a bad ruling for shareholders of anything. Here is why: Facebook is a membership organization where you have to give personal details that they can turn around and sell (betray) your information to others. And if you have one of those accounts, now everyone who knows you wants to "connect". If you don't want your whole life's details on the Internet, this means you have to insult your friends and do without news on your investments. I can deal with my friends. But the regulators and courts should respect our choices not to show up on line enough not to require you to get a Facebook account just to know what your NFLX shares are doing.

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