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.