Netflix (NASDAQ: NFLX) was recently listed as one our stocks to watch. Well, watching may have just shifted to buying. The price for a share of Netflix stock just dipped a little today. It wasn’t a full-fledged downward trend, but the stock tumbled a bit due to a seven for one stock split. This technique is used to make a very popular stock more affordable for amateur traders. Current Netflix shareholders will now have stock that is worth an extra seven shares for each share.
While an additional seven shares may seem like a windfall, the split doesn’t affect the price greatly for present investors. The value of their stock has decreased in price, and the new valuation should equal their total prior to the stock split. This Netflix stock split is a sign that the company is thriving and making efforts to remain approachable. Netflix was the stock on the S&P with the best performance. The stock posted 8% gains since the beginning of the year, which greater than doubles their starting value. Netflix is still considered by many analysts to be a pricey buy. The stock is trading at 226 times its projected earnings for next year, which is more than the ratings of Facebook Inc (NASDAQ: FB) and Fitbit Inc (NYSE:FIT).
Subscribers in the global arena jumped from 2.37 million to 23.3 million. As Netflix continues its expansion into the global market, their stock is only aimed in one direction.
Amazon.com, Inc, (NASDAQ:AMZN) is on the track to be the most profitable retailer on the planet. The company is in the process of finalizing their first ever Prime Day Sale, which their competitor Walmart reciprocate with a similar price cutting day. Walmart stock has been struggling, and it is 15% down from the beginning of the year. This isn’t to say that Walmart is still a formidable company – valued at $235 billion. Amazon owns the digital marketplace, and everyone else in the industry is trying to play catch up. The retail giant reported profit earning yesterday, and it was not as Wall Street analyst expected.
Insurance and biotech companies were listed in the hot stocks to watch for the next couple weeks. Companies like Cigna, Aetna, and Hospira all have YTD gains in the mid to high 40s +. Checking out these stocks could prove a wise choice as the summer draws to a close and investors gear up for the end of the year push.