Buzz Stocks: Netflix, Southern, and Alibaba Group Holding

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

Mark Fightmaster
Aug 24, 2015 at 9:37 AM
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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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