Netflix shares gain for a fourth straight session on Monday, streaming media giant poaches Activision Blizzard’s Spencer Neumann

January 2, 2019 11:38 am

According to a report by Reuters earlier this week, citing a person with knowledge of the matter, media finance veteran Spencer Neumann has been poached by Netflix Inc from Activision Blizzard to be appointed as the streaming media company’s next Chief Financial Officer.

Netflix shares closed higher for a fourth consecutive trading session on NASDAQ on Monday. It has also been the sharpest daily surge since December 26th. The stock went up 4.52% ($11.58) to $267.66, after touching an intraday high at $270.10, or a price level not seen since December 19th ($280.87).

Shares of Netflix Inc went up 39.44% in 2018 compared with a 6.24% drop for the benchmark index, S&P 500 (SPX).

In 2017, Netflix Inc’s stock surged 55.06%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

Spencer Neumann has previously been in a number of finance roles, including at Walt Disney Company. He is to succeed David Wells, who last August announced plans to retire after a 14-year experience at Netflix Inc.

In a regulatory filing on Monday, Activision Blizzard explained that it intended to fire Neumann “for cause unrelated to the company’s financial reporting or disclosure controls and procedures.”

Activision has placed Neumann on paid leave, the company also said.

According to the source, Netflix Inc’s next CFO will likely be located in Los Angeles and will be focused on production finance.

According to CNN Money, the 38 analysts, offering 12-month forecasts regarding Netflix Inc’s stock price, have a median target of $412.50, with a high estimate of $480.00 and a low estimate of $150.00. The median estimate represents a 54.11% upside compared to the closing price of $267.66 on December 31st.

The same media also reported that 23 out of 41 surveyed investment analysts had rated Netflix Inc’s stock as “Buy”, while 13 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Netflix Inc (NFLX) are presented as follows:

Central Pivot Point – $249.74
R1 – $268.25
R2 – $280.42
R3 – $298.93
R4 – $317.44

S1 – $237.57
S2 – $219.06
S3 – $206.89
S4 – $194.72

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