Stocks jump after investments from CEO Reed Hastings, Capital Research

Netflix and Facebook, two companies that have had a rocky rapport with Wall Street, got a big boost Friday after a set of trades showed they have some friends out there.

Los Angeles-based Capital Research and Management gave Netflix a thumbs up, grabbing a 10.5% stake, even as Netflix CEO Reed Hastings offered his own vote of confidence in Facebook, disclosing a personal investment in the giant social-networking company. Facebook shares jumped 3.97% to $21.81. Netflix was up 3.44% at $59.90.

Capital said in an SEC filing Friday it had acquired 5.8 million shares of Netflix as of July 31 for an average price of $79.43. That’s a show of faith in the video service provider, whose stock has been tumbling. Netflix is¬†controversial among investors who tend to love it or hate it.

Hastings, who sits on Facebook’s board of directors, acquired about 48,000 shares this week for about $1 million, at $21.03 per share. Facebook’s Street cred was badly rattled by a botched initial public offering in May.

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