International launches lift Netflix

Netflix’s stock price has recovered from recent declines in the wake of the streaming service announcing a130-country launch yesterday.

After two days of declines, Netflix was up 9.31% on the day, ending at US$117.68.

The US-listed SVOD service has been one of Wall Street’s star performers in recent years and was the top performing S&P 500 stock in 2015.

Earlier this week, however, the stock price went into reverse, with declines outstripping those of the wider market, which suffered as China froze trading on weak output numbers.

The share price decline was driven in part by an analyst downgrade that cited concerns over slowing US subscriber growth, in turn putting added investor emphasis on its international plans.

The dramatic recovery yesterday came on the same day that Netflix announced its huge simultaneous international rollout plans. The one-day gains wiped out recent losses, returning Netflix stock to similar levels to end-2015.

Netflix hit 130 countries including India, Singapore and Turkey yesterday.