Netflix has agreed to pay Comcast an undisclosed sum of money to ensure its streaming video runs smoothly on the company's network. Many are looking at the deal as a precedent to future deals with other broadband providers. While many investors feared that this might be on the way and that it would have a negative impact on the stock, shares were actually up on the news.
In the lead segment from Monday's edition of Investor Beat, host Chris Hill and Motley Fool analysts Jason Moser and Taylor Muckerman discuss the deal, how it ultimately benefits consumers, and what it reveals about the consumer-focused management philosophy at Netflix.
Then, the guys take a look at four stocks moving on the market today. Shares of Lifelock are falling today after the company disclosed that whistle-blowers have talked to the Federal Trade Commission regarding the company's marketing practices. The Container Store also dropped today, on news of a downgrade to underperform by Merrill Lynch. Humana has hit an all-time high after proposed Medicare cuts were lower than originally expected. And shares of 3D Systems fell today, after they, too, were downgraded by Merrill Lynch. The accompanying report posited that the company's organic growth rate would peak in 2014.
And finally, the third quarter of 2013 was huge for the solar industry, the second strongest ever in the U.S. for solar installations, and the first strongest in terms of residential installations. This has Taylor keeping a close eye on how the fourth quarter looks for SolarCity when it announces earnings this afternoon. Meanwhile, Jason will be watching the Chinese web portal Sina, which owns the popular Chinese microblogging site Weibo, a site many have called the Chinese version of Twitter. Jason discusses rumors that Sina may spin off the Weibo business, which would then have its own IPO. He says he'll be watching when the company reports earnings after market close today to see if the company gives any further news on that front.
Will Netflix be the one that finally disrupts cable and wins the war for your living room?
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple.
Chris Hill has no position in any stocks mentioned. Jason Moser owns shares of Sina. Taylor Muckerman owns shares of SolarCity. The Motley Fool recommends 3D Systems, LifeLock, Netflix, Sina, SolarCity, and The Container Store Group. The Motley Fool owns shares of 3D Systems, Netflix, Sina, and SolarCity. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.