Netflix CEO Buys $1 Million Worth Of Stock. FaceBook Stock

Tyler Durden's picture

Reed Hastings is not a popular man with NFLX shareholders. After taking the stock just shy of $300 last summer, a series of abysmal executive decisions that followed (including buying company stock using corporate cash near the peak) has seen the video streamer plumb news depths, and recently was trading at fresh two year lows. One would think that if indeed the CEO had some extra cash lying around that he could do something, anything to prop up his company, and send some signal of confidence in the now battered one time high-flying DVD-rental company. And would also be right. Partially. Because as the attached From 4 indicates, Reed did indeed just fork over $1 million to buy new shares. Only problem is the stock he bought was not his own but that of... FaceBook. Which he bought at an average price $21. Of course, if one needed glaring evidence that FB is going far lower, this is it. Yet we certainly thank Reed for telling us and his shareholders that NFLX is still not low enough for him to even consider buying some here.

Ok, but surely, Reed has bought at least some NFLX stock in the past? Well, we will let readers answer for themselves.

In the chart below, red arrows indicate Reed's sales of NFLX stock. The green ones are where he bought. 

h/t TradeHawk

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LoneStarHog's picture

Reed Hastings wants to be able to tell his grandkids about his Facebook "investment" and how damn smart he was to be in the company of investors like MillionDollarBonus.

Oh! The stories that these two Gramps will be able to tell the little ones.

Precious's picture

Netflix employees are being offered the Geico Health Insurance plan for $7.99 a month which provides 100 percent coverage for polio and small pox.  Warren Buffett said the deal will be rolled out to the rest of the world within 12 months.

Pladizow's picture

He got a good deal through Groupon!

Dr Benway's picture

Logically, if you look at the market as a whole, crossholdings between companies can produce no net cash inflow and so are utter dead weight. But they support each others share prices.


Munchhausen would be proud of this ridiculous new strategy.

fireangelmaverick's picture

I thought Warren was buying insurance for Small Cox. no?


lineskis's picture

A week ahead of the expiration of the lock up (~268 millions shares...), that's "ballsy"...

css1971's picture

They're going to "da Moon!".

Matt's picture

Lock-up expiry is bullish, right?

As a side note, are there two seperate tiers of shareholders, some with 90 day and some with 180-day lockups on FB?

EvlTheCat's picture

MDB?  More like RobotTard.

TeMpTeK's picture

"Of course, if one needed glaring evidence that FB is going far lower, this is it"



malikai's picture

Things like this made me wish I did equities. But I'm glad I don't touch the stuff. Bad for the digestion, I hear.

slaughterer's picture

Ok, it must be a trick.  Where are the "green arrows"?

The Wizard of Oz's picture


hannah's picture

they are on the FB chart....

NotApplicable's picture

I saw red.

I saw red.

One more part-time company, I shot dead.

Konami Code's picture

Everyday I sell it just a little bit more, little bit more, little bit more.

cossack55's picture

Maybe FacePlant is doing a IPO DVD.

Zero Govt's picture

he's helping shore up California's pension funds isn't he?

nobody needs help as much as California


CvlDobd's picture

Things I learned on ZeroHedge today, I'm color blind.

magpie's picture

This should be good enough for a takeover rumour in whatever direction.

greensnacks's picture

The rumor ought to be that the USPS is about to raise their rates and crush netflix ... but it's ok, cause FB will save 'em!


jumbo maverick's picture

Netflix unleashes 12hit point DVD blindness spell
Facebook counters with 15hit point Jason Vorhees melee FarmVille attack
USPS conjures up a trumping 32hit point government avalanche paper cut attack
At least this is what Japanese analysts have discovered so far. Updates as details unfold.

Ralph Spoilsport's picture

Well, here's another thing today on ZH that is really fucking stupid. FaceBerg?

Meesohaawnee's picture

all im copying this. Reuters has really stooped to new "paid off "lows. this gets me so angry!!!!!!!!!!!!!! to see articles like this. I know ZH ers will be to. This just isnt funny

guys  .Serious. Reuters needs to be really "lit up " for this one. I want to puke!! the lies are just unreal


Hype Alert's picture

Wall Street donates to get him out of office and get Romney elected, yet Wall Street runs up the market which will get him re-elected.  Yes, it was a disgusting article.


We can't have a down day in the market.  It would be interesting to find the WH behind some not so secret "buying" the market up.

magpie's picture

It would be interesting to know what yield pain threshhold they are willing to accept to get Obama reelected.

magpie's picture

Until it isn't money anymore.

smlbizman's picture

the silver lining in that article mee, is in the the last 2 yrs the wisdom of the populace has improved greatly...there was a time reading comments on those msm sites would make me throw my lap top across the room than the wife and kids got pissed cause i ruined diner...

e-man's picture

Isn't this what dot coms did in the 90's?  You buy our stock, we'll buy your stock and we'll all drive around in lamborghinis.  What could go wrong?

NotApplicable's picture

But it's a robust service economy!

Dr. Engali's picture

Now Tyler we all know that it is standard operating proceedure for a CEO  to have programmed sales of stock.We wouldn't want them to have an over concentrated position in their portfolio now would we? I'm sure he is doing all for the sake of diversification.

Shizzmoney's picture

The guy should of just set the money on fire and did a webcast and charged people for it. 

He woudl of made more money off of setting it on fire than buying $FB.

debtor of last resort's picture

Anticipating to the new hft/CB world. AND BTFD. A learning moment?

Scalaris's picture

Pulling the classic Whitney Tilson move I see.

Dr. Engali's picture

Whitney was buying Netflix at $300 and calling it a value stock.

Scalaris's picture

So many conflicting ironies; mainly poetic.

Next up, Zuckerberg stacking up on dark pools of J.C. Penney. 

Squid Vicious's picture

scumbag was unloading 5000 shares every week like clockwork on the way up, while telling shareholders everything was going better than great!

Cursive's picture

Does NFLX really have any "shareholders?"  It's just an overpriced sack of shit that gets passed around by a bunch of algos and momo chasing monkeys.

Long-John-Silver's picture
400,000 American homes have dumped pay-TV so far this year

On-line streaming has made cable/satellite obsolete. In a year and a half over 1.5 million households have cut the cable/satellite and are paying for Netflix, Amazon, HULU, and other video/audio streaming services. Cable/Satellite will be dead within the next 2 years. 

This is the end's picture

If he needs to boost earnings just take free cash and buy any dips in spy.

Bear's picture

No MANU purchase ... Wtf

LongSoupLine's picture



I hear it was the only way Hastings was going to get Zuck to "friend him".

adr's picture

Corporations exist to be piggy banks for CEOs and directors. The higher you can con your share price to give greater profit per transaction, the better.

DO you need any more evidence than Reed's chart?

Hundreds of millions in his pockets, a giant load of worthless crap for shareholders.


Arnold Ziffel's picture

"Mr Hastings couldn't be reached for comment."

MeelionDollerBogus's picture


now RobotTrader has doubled down automatically on FB since his holdings in NFLX are already well-established.

For the muthafuckin WIN

Lost Wages's picture

I spend most of my time on Netflix looking for something to watch, because it all sucks. I'll be looking for a movie or TV show to watch, then all of a sudden 40 minutes or an hour has gone by and I haven't found anything worth watching, I've just been clicking around on my Roku or Apple TV trying desperately to find something interesting. If Netflix were worth anything, I'm sure Zuckerberg would have bought them for $1 billion by now.