Netflix Sees Volatile Trading, but Sector Posts Gains Midday

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Netflix Sees Volatile Trading, but Sector Posts Gains Midday

Hot news – Netflix (NASDAQ:NFLX) shares went on a roller-coaster ride through to midday trading as they continued to struggle following what looked like very strong earnings.

Netflix stock was down more then 3% in morning trading, before paring losses. It was down about 1% at 12:12 PM ET (16:12 GMT).

The streaming video company tapped the debt markets again today, offering $2 billion more in junk bonds to pay to develop original content. That’s the third time the company has raised money through the debt markets this year.

The rising amount of debt the company needs to keep producing original shows is becoming a concern for investors, especially in times of rising rates. And short interest is growing sharply on FANG debt.

Netflix will have $14 billion in debt by 2020, Jason Kim, senior analyst at Goldman Sachs (NYSE:GS), told Reuters.

Netflix has been the big drag on the new S&P Communications Services sector, which used to be the telecom sector, but was changed in a big reclassification.

The sector index is down about 11% in October, but was up about 0.3% midday.

The index was helped some by TripAdvisor (NASDAQ:TRIP), which gained about 1.5%, and Facebook (NASDAQ:FB), up about 1%.

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