No. 1 Best Performer: Netflix
First-Half Return: +130%
Talk about hitting it out of the park — Netflix (NFLX) hasn’t made a misstep the entire year. Consider its growth: revenue hit the $1 billion mark last quarter,while membership grew to 36 million. Net profits came in at nearly $3 million, and investors cheered at the results.
That’s just the tip of the iceberg: During the first half Netflix announced original content programming like its popular House of Cards, and Hemlock Grove, and resurrected the canceled series Arrested Development to help drive traffic.
The blockbuster move, though, was its deal with Dreamworks (DWA) to produce new programming and create original shows based on DWA properties like Shrek, Kung Fu Panda and Madagascar. The deal includes more than 300 hours of original programming starting in 2014, and helped move the stock price over 4% on the announcement, helping to power the stock to its exalted No. 1 spot on the S&P 500 so far this year.
Is there any reason to see a downturn? Probably not — Jeff Reeves explains why here.