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Netflix soars, crashes within day

Fri., Oct. 22, 2010, midnight

SAN FRANCISCO – It was a great day to be a Netflix shareholder, but not a good one to be a Netflix subscriber hoping to watch a movie.

Just hours after Netflix’s stock price hit an all-time high Thursday, its website began suffering outages that prevented many of its nearly 17 million subscribers from streaming video over the Internet.

The breakdown was especially embarrassing because it occurred the day after Netflix CEO Reed Hastings predicted that subscribers will soon be watching more hours of video on the Internet than on DVDs, which the company delivers by mail.

Netflix shares surged nearly 13 percent to close at $172.79 on the heels of robust third-quarter growth.


 

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