Buzz Stocks: Netflix, Inc., Southern Co, and Alibaba Group Holding Ltd

Today's stocks to watch include Netflix, Inc. (NFLX), Southern Co (SO), and Alibaba Group Holding Ltd (BABA)

by Mark Fightmaster

Published on Aug 24, 2015 at 9:37 AM
Updated on Aug 24, 2015 at 9:39 AM

U.S. stocks are getting slaughtered again, with China pacing a global stock rout. Among the equities in focus are streaming media giant Netflix, Inc. (NASDAQ:NFLX), public utility company Southern Co (NYSE:SO), and Chinese Internet name Alibaba Group Holding Ltd (NASDAQ:BABA).

  • NFLX is 16.3% lower at $87 this morning, following the global equities market into the red. The company just announced that it is going to partner with Japanese firm SoftBank Group Corp to launch its video-streaming service in Japan (subscription required) on Sept. 2. In addition, SoftBank will begin pre-installing the Netflix, Inc. app on smartphones for sale after October. Technically, NFLX has pulled back from all-time highs hit earlier this month, due to recent broad-market headwinds. Still, the stock is up more than 85% in 2015. Options players are more put-heavy than usual, as NFLX's Schaeffer's put/call open interest ratio (SOIR) of 1.59 ranks in the 99th percentile of its annual range.

  • SO is 4% lower at $43.97 this morning, after the company announced that it will buy AGL Resources Inc. (NYSE:GAS) for about $8 billion in cash. The merger will create America's leading U.S. electric and gas utility company. Until today, Southern Co. was in the black for the month -- a relatively rare feat. However, analysts maintain a bearish stance, with 12 of the 13 brokerages tracking SO rating it a "hold" or worse.  

  • Finally, BABA has failed to stave off sub-IPO lows, with the shares dropping to $58 out of the gate, due to pressure on Chinese names. At last check, BABA was down 13.5% at $58.94. In November, Alibaba Group Holding Ltd hit an all-time high, but has since lost more than half its value. A big danger for the Chinese Internet giant is downgrades, as 21 of the analysts issuing ratings give BABA a "buy" or better. 

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