The Video Privacy Protection Act, which came about more than 20 years ago after Supreme Court nominee Robert Bork’s unsuccessful bid for the high court, astoundingly blocks Netflix (NASDAQ:NFLX) from promoting its service. The law requiring written permission for companies to share video records was passed after Bork’s video rental records were made public The mandate deprives Netflix and other media companies of a free advertising tool that allows users to share movies choices via Twitter or Facebook.
After a brief ascent yesterday, Netflix (NASDAQ:NFLX) resumes its decline after S&P downgrades its already junk-grade credit rating to BB- late Monday. The company’s zeaolus expansion plans could damage its earning potential as its subscriber growth decelerates, says the ratings agency.
Here’s how Netflix is trading on the news:
Netflix, Inc. (NASDAQ:NFLX): NFLX shares recently traded at $67.57, down $2.38, or 3.4%. They have traded in a 52-week range of $62.90 to $304.79. Volume today was 7,135,691 shares versus a 3-month average volume of 9,697,140 shares. The company’s trailing P/E is 15.36, while trailing earnings are $4.40 per share.