Please ensure Javascript is enabled for purposes of website accessibility

A Fool Looks Back

By Rick Munarriz – Jan 25, 2014 at 7:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Let's go over some of the stories that shaped the market this past week.

Things just got a little more interesting at Netflix (NFLX 3.74%). Beyond putting out blowout quarterly results as revenue, subscriber count, and profitability far exceeded expectations, the leading video service is now hinting at increasing prices

Claiming that it's in no rush to implement such a change, Netflix is already alerting members that any shifts in pricing will offer them generous grandfathering terms as existing subscribers. The move also would not be without precedent, since it just increased its basic rate in Ireland earlier this month.

This is still a pretty big deal, especially since its content licensing deals are done at flat rates. In other words, most of the increase would float right down to the pre-tax profit line. Well done, Netflix. 

Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

  • Wal-Mart (WMT 0.62%) announced layoffs at its Sam's Club division, slashing roughly 2,300 jobs from its warehouse club. The discount department store chain had a challenging year, but the pink slips are still an unwelcome surprise.
  • Baidu (BIDU 0.06%) and many of its peers moved lower after an SEC administrative law judge moved to ban the Chinese units of the Big Four accounting firms for not being more forthright about their Chinese audits. The firms claim that it would violate China law, and they're appealing the six-month ban. For now it just creates more uncertainty for investors in Chinese growth stocks.
  • Carl Icahn was busy this week. He beefed up his investment in Apple (AAPL 0.19%) by $500 million, continuing to lobby for the consumer tech giant to be more aggressive in returning money to its stakeholders. He also began to rattle his activist tendencies at eBay (EBAY -0.62%). Icahn feels that the online marketplace leader should spin off PayPal in a move to increase shareholder value. 

Longtime Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends and owns shares of Apple, Baidu, Berkshire Hathaway, eBay, and Netflix. We Fools don't 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.

Stocks Mentioned

Netflix Stock Quote
Netflix
NFLX
$316.95 (3.74%) $11.42
Apple Stock Quote
Apple
AAPL
$148.31 (0.19%) $0.28
Walmart Stock Quote
Walmart
WMT
$153.37 (0.62%) $0.95
Baidu Stock Quote
Baidu
BIDU
$108.67 (0.06%) $0.07
eBay Stock Quote
eBay
EBAY
$45.16 (-0.62%) $0.28

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.