From blockbusters to independent films our “Surprise Friday” guest runs a company that's a favorite of film lovers. He ships 1.9 million red envelopes to customers every day. Who is it?
Fast Money’s “Surprise Friday” guest is Netflix CEO Reed Hastings.
Netflix stock rallied modestly on Friday one day after an analyst downgraded the online movie rental service provider, saying it may soon face increased competition from rival Blockbuster.
Lloyd Walmsley of Thomas Weisel Partners said in a client note that there are indications Blockbuster is ramping up its marketing activity and adding more Total Access subscribers. (Total Access is a hybrid in-store and online video rental plan.)
The analyst reduced his rating to "Market Weight" from "Overweight" and lowered his price target to $35 from $40.
Netflix might be down but they’re not out, by any means. CEO Reed Hastings is implementing a plan to win greater market share. “We’re getting into instant streaming,” explains Hastings on CNBC’s Fast Money. “Subscribers get free streaming that they can watch on their PC’s. And this week we introduced a new device that allows subscribers to watch video streaming on their TV’s... at DVD quality. And it’s included in the price. That gives us an advantage in retention and great word of mouth.”
To hear more about Hastings turnaround plan please watch the video.
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Trader disclosure: On May 30, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (MSFT), (INTC), (DIS), (WMT), (ATVI); Najarian Owns (AAPL), (ANR), (BHI), (BKC), (HPQ), (TSO), (XLF), (AMLN), (HD), (SYMX); Najarian Owns (HK) Calls; Najarian Owns (EXM) And (EXM) Puts; Adami Owns (BTU), (C), (GS), (INTC), (MSFT), (NUE), (AGU); Finerman Owns (GS); Finerman's Firm And Finerman Own (GLNG), (HD); Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns SXP Index Puts; Finerman's Firm Owns (AAPL), (MSFT), (SUN), (TSO), (VLO), (SBUX), (MPG); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY)