J.C. Penney, Netflix Calm Down (JCP, NFLX)
Shares of J.C. Penney Co. Inc. (NYSE: JCP) jumped more than 15% yesterday while shares of Netflix Inc. (NASDAQ: NFLX) soared more than 22%. Today’s gains are far more modest, about 0.2% for both companies. Penney bounced on the announcement…
Shares of J.C. Penney Co. Inc. (NYSE: JCP) jumped more than 15% yesterday while shares of Netflix Inc. (NASDAQ: NFLX) soared more than 22%. Today’s gains are far more modest, about 0.2% for both companies.
Penney bounced on the announcement of a new strategy by the company’s new CEO, a former executive at Apple Inc. (NASDAQ: AAPL). That strategy is going to take three years to complete, and the stock can’t rise 15% every day til then.
As for Netflix, the unexpected boost in subscriber numbers needs to continue and the company has got to figure out a way either to lower content costs or raise prices or gain even more subscribers in order to maintain profitability.
Neither stock was a dead-cat bounce, but there’s plenty left to do to justify yesterday’s gains.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
