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.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Berkshire Hathaway and Netflix at the time of publication. He also had a long-term call options position in Netflix. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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