LG stands for Let's Go
Well done, Netflix
The move is bold. I have often accused Netflix of a slow-footed approach to digital delivery. It was late in launching a digital delivery platform, and even there the company limited itself to PC users and just a sliver of its existing library. It almost seemed as if Netflix wanted to gingerly wedge its foot in the door, without committing to the digital delivery platform that could one day supplant its bread-and-butter mail-order subscription business.
The deal with LG is significant, especially because the early indication is that the digitally delivered product will be completely free for existing Netflix subscribers. Even if cable providers like Comcast
Elsewhere in the world of business news
The holiday slowdown didn't stop the financial headlines from coming.
co-founder Jason Lindsey retired again. It should stick this time. CEO Patrick Byrne talked Lindsey into returning to the discount e-tailer less than two years ago. He did a stellar job of keeping inventory in check and slashing costs. Growth slowed substantially, but at least the company now has positive free cash flow over the trailing year. The stock may not be the darling it used to be, but at least it's got what it takes to be a survivor. Bears? Get thee to a closeout bin for an immediate sale on Overstock.com. (Nasdaq: OSTK)
- Despite the abridged trading week, analysts were still busy upgrading and downgrading major stocks. A Citi analyst upgraded shares of Amazon.com
just as a Bear Stearns pro was downgrading Starbucks (Nasdaq SBUX). Can you believe that Starbucks is now trading for less than 20 times forward earnings? It may be the first time that Starbucks and its overpriced lattes have ever been called cheap. (Nasdaq: AMZN)
- Two of Thursday's biggest losers were tax preparation giants H&R Block
and Jackson Hewitt (NYSE: HRB) , which fell after the Internal Revenue Service threatened to restrict the practice of tax return anticipation loans. Talk about Uncle Sam getting a pair of companies to mutter "uncle!" (NYSE: JTX)
Until next week, I remain,
Netflix, Amazon.com, and Starbucks are Stock Advisor recommendations. Find out why with a free 30-day trial. Jackson Hewitt is recommended by both Inside Value and Motley Fool Hidden Gems Pay Dirt.
Longtime Fool contributor Rick Munarriz recommends windshield wiper fluid when trying to look back. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. He does not own shares in any of the companies in this story, save for Netflix. The Fool has a disclosure policy.