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Netflix (NFLX -4.5%) slumps after releasing all 15 episodes of Season 4 of Arrested Development...

Netflix (NFLX -4.5%) slumps after releasing all 15 episodes of Season 4 of Arrested Development over the weekend (following a 7-year break) to mixed reviews, at best. "If you truly loved [the first 3 seasons], it's hard to imagine being anything but disappointed with this new rendition," writes the NYT's Mike Hale. The WSJ's Nathan Rabin: "The pacing is notably slower than during its original run and the show lacks the breathtaking density that characterized its glorious past." The LA Times' Robert Lloyd is more positive. "I have ... watched it all – and not with grim determination, but rather great, increasing satisfaction." (The Daily Beast) (The Guardian)
Comments (12)
  • They were pretty good, but I really did expect more. 15 episodes of telling the same story from multiple perspectives was neat and all, but if Netflix wants to really get customers exited, it's going to have to follow up on this.
    28 May 2013, 10:55 AM Reply Like
  • technicals aren't looking to good here; perhaps it will fill the earnings gap from late April.
    28 May 2013, 10:58 AM Reply Like
  • Maybe the promotional set-up raised expectations too high, but with mainstream press review headlines like "A Painfully Honest Review of Arrested Development Season 4" (TV Guide, http://bit.ly/10xFYOT), "A Development Short of Arresting" (USA Today, http://usat.ly/130CtQE), "Premiere Review: Huge Mistakes Were Made (But I Still Have Hope)" (TV.com, http://bit.ly/130BTlW), and "It's Just Not as Funny" (People, http://bit.ly/10xFYOZ)... this is clearly not the reception NFLX was hoping for.
    28 May 2013, 11:11 AM Reply Like
  • Okay... so folks are disappointed in the new season of Arrested Development. Yeah, programming is important, but down 4.5% ?? It shows how ridiculous the market is. I can't imagine a plunge on Disney, if a mediocre film came out.
    28 May 2013, 11:12 AM Reply Like
  • "I can't imagine a plunge on Disney, if a mediocre film came out. "

     

    Ummmm...have you compared the valuations of NFLX and DIS? NFLX is priced for perfection, DIS for reality. Can you really be surprised by a 4.5% drop when reality bites?
    28 May 2013, 11:28 AM Reply Like
  • NFLX is a momentum stock that has been significantly driven this year by news about its original series. A press release about a single upcoming new show can spark a pop in the share price. And the performance of originals is central to the bull case. See Doug Anmuth, J.P. Morgan (http://bit.ly/110eJbg): Reiterates an Overweight rating and raises his price target to $254 from $205. “We believe Netflix has increasing leverage with content providers and original content is off to a strong start, with House of Cards driving high engagement and likely improving retention, Hemlock Grove seeing strong viewing in its first weekend, and Arrested Development coming in late May. We believe the virtuous cycle of more subscribers and better content is once again in effect for Netflix.” Content-driven investor sentiment is a double-edged sword when new shows fail lofty expectations. So far NFLX has one hit (House of Cards), one huh? (Lilyhammer), one fast-fading critical flop (Hemlock Grove), and one disappointing revival (Arrested Development). Bulls were looking to AD4 as a big catalyst. This share price reaction is not surprising.
    28 May 2013, 11:51 AM Reply Like
  • Shows how weak the fundamentals of nflx really are if 'small' news like this can give the share price such a hit.
    28 May 2013, 12:05 PM Reply Like
  • its amazing how you guys rationalize the stupid valuations...

     

    when you have a stock trading at 100'sx earnings, and the world is in love with you, and just announcing some new show drives the stock up up up..

     

    then the show is not so great, and you whine about it going down...

     

    it reeks of weakness..
    28 May 2013, 11:43 AM Reply Like
  • Reed Hastings reportedly will be on CNBC tomorrow, Wed. Closely watch it.
    28 May 2013, 02:13 PM Reply Like
  • That means how they setup the news for higher price.
    29 May 2013, 01:00 AM Reply Like
  • Maybe AD4 is getting too much of the blame...Reaction to loss of Viacom shows (to AMZN's competitive benefit) could also be a secondary factor in stock drop.
    http://yhoo.it/11vGbDL
    http://dthin.gs/18x5Z2z
    28 May 2013, 03:31 PM Reply Like
  • Update on AD4 (I posted elsewhere but thought folks here would be interested): Check out Google Trends (http://bit.ly/178q66C last 30 days either US or worldwide and generally or within sub-categories). Interest in this NFLX original is in free fall, down 85% by June 3 from its peak May 26, just over a week earlier. NFLX critical flop Hemlock Grove didn't fade nearly as fast. This precipitous drop is quite surprising, and has to be a very bad sign.
    5 Jun 2013, 05:06 PM Reply Like
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