Netflix is feeling the love in Wednesday trading after news that a Fox-Time Warner merger is a no-go and Disney CEO Bob Iger indicated the entertainment company plans to expand its relationship with the streaming video service.
Shares of Netflix were streaming up 2 percent by the late afternoon. The Wednesday pick-me-up is helping the company recover after Wall Street punished it for missing earnings estimate by a penny in its second-quarter report, which was posted on July 21.
Traders on StockTwits tuned into the trading action with mixed emotions, noting that Wall Street may be a little more optimistic now that heavyweight entertainment companies 21st Century Fox and Time Warner, owner of Netflix rival HBO, won’t be joining forces. The Wall Street Journal reported late Tuesday that Fox withdrew its bid for Time Warner.
Netflix’s relationship with Disney also appears stronger than ever following comments Iger made to analysts. “We’re growing our business with Netflix, first of all because we believe in their platform and its future,” Iger said Tuesday afternoon. The companies have been in partnership since December 2012, when they signed an exclusive 3-year licensing deal.
Netflix closed its second quarter with 50 million subscribers.
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