The feud between Netflix, Inc. (NASDAQ:NFLX) and Verizon Communications Inc. (NYSE:VZ) doesn’t seem to come to an end. Julia Boorstin of CNBC was reporting this issue on Friday. The issue is “Who should pay to speed internet traffic?” and Netflix replied to Verizon’s response blaming it for the buffering issue and said that the interconnection point is controlled by the ISPs such as Verizon.
Netflix, Inc. (NASDAQ:NFLX) mentioned in the response that consumers get a lousy experience even after paying for a plan that should cover the streaming of high quality of Netflix video and that is why the company is calling for strong net neutrality which would cover the interconnection required for the users to get the quality of internet they deserve. That definitely looks sarcastic and both the companies are pointing fingers towards each other on the buffering issue.
The share price of Netflix, Inc. (NASDAQ:NFLX) dipped 6.86% in the last trading week and Jon Najarian feels that there would be more short bets coming on the stock. However there is an issue with the short side of it and it never actually trades on real valuations. Najarian says that he would only be on puts for short and he has never actually had stake in the company.
“I would be nervous and I would be owning puts on this name. I have no position, long or short” Najarian said about his interest in the stock.
Netflix, Inc. (NASDAQ:NFLX), though has changed the way people look at TV. A lot of people have moved to the internet streaming provider and don’t watch TV much. The way the stock went up earlier this year has been very impressive and with all this the stock took a dip last week. The battle is between two great performers of the Wall Street and it is getting aggravated by the day.
One of the key investors in Verizon Communications Inc. (NYSE:VZ) is Lansdowne Partners with over 1.34 million shares as of 31st March 2014 and the key investor in Netflix, Inc. (NASDAQ:NFLX) is Icahn Capital Lp with approximately 2.2 million shares.
Disclosure: None
