Netflix, Inc. (NFLX) has declined sharply today. The stock fell more than 5 percent to $196.09 for the second-biggest retreat in the S&P 500 Index. The online movie-rental service nosedived after Warner Bros., which is owned by Time Warner Inc. (TWX), said it will begin offering select movies for purchase or rental through Facebook Inc., enabling the social-networking giant to compete in the online movie-rental market.[via WSJ] “Facebook has become a daily destination for hundreds of millions of people,” said Thomas Gewecke, president of Warner Bros. Digital Distribution. “Making our films available through Facebook is a natural extension of our digital distribution efforts.”
Netflix shares continue to remain under pressure here midday. The stock is currently trading back below its 50-day/$202.99 moving average and the $200 level that acted as support for the ticker last week. NFLX stock will have support at $197.24, and then at $196.45. As the equity sinks lower, it is currently approaching minor support around the mid-January peak of $194.84. If the bleeding persists the equity’s gap close is around the $187.00 area. Aggressive day traders can look for short-term/bounces and scalping opportunities around these levels.
NFLX fell $11.41, or 5.63 percent, to $195.09 as of 1:33 p.m. in New York.