January 30, 2022
With shares down more than 37%, Netflix co-founder/co-CEO Reed Hastings on Jan. 28 acquired 51,440 shares of the SVOD behemoth, paying $388.83 per share, or $20 million — the executive’s largest inside stock purchase since 2010, according to a regulatory filing.
Prior to the purchase, Hastings owned more 8 million worth of Netflix shares, making him one of the company’s largest stockholders.
The move was simple: Show executive confidence in Netflix and help slow the market selloff, which began even before the streaming giant missed slightly on its fourth-quarter subscriber growth projections, and estimated just 2.5 million sub growth in Q1, ending March 31.
Netflix, which has seen its shares reach more than $612 per share in valuation earlier this month, closed Jan. 28 priced at $384 per share.
The lower stock price prompted Wall Street hedge fund operator Bill Ackman to acquire 3.1 million shares, valued at more than $1 billion. The Pershing Square Capital Management owner said the hedge fund was “all-in on streaming video.”
“Many of our best investments have emerged when other investors, whose time horizons are short term, discard great companies at prices that look extraordinarily attractive when one has a long-term horizon,” Ackman wrote in a note to shareholders.