Netflix appears to have lost whatever good will it once had on Wall Street, as the market reacted negatively to the latest move by the company.
Netflix shares fell 4.8% Monday after the company announced it would scrap its Qwikster plan, reports Deadline.com. The decline came on a day when the S&P 500 rose 3.4%, while media stocks saw a 4% gain, the story points out.
The company has lost almost 63% of its value since July. "The flip-flop seemed to reinforce concerns that CEO Reed Hastings has lost his sense of direction," the article notes.
Hastings irked customers three weeks ago by announcing a plan to separate its DVD-by-mail business, which it planned to rename Qwikster, from its video-streaming operations.
According to The Wall Street Journal, investors were as angry about the plan as subscribers.
Hastings joked on his Facebook page on Sept. 20 — two days after the first Qwikster announcement — that he was at a Wyoming retreat with 10 investors. "I think I might need a food taster. I can hardly blame them," he wrote, according to the Journal story.