Deutsche Bank (NYSE: DB) and Netflix (NASDAQ: NFLX) both saw their stocks trade relatively flat on Friday but that doesn’t mean they didn’t dominate the headlines.
Here is what you may have missed.
Deutsche Bank’s Largest Investor Offers A Nod Of Confidence
The royal family of Qatar is among one of the largest shareholders in the German bank. The royal family has shown a tendency of sticking with the bank throughout 2016 even though the stock is lower by more than 40 percent.
There is an old saying in investing: don’t throw more good money after bad money. In other words – cut or stick to your losses but don’t new money to an investment gone bad.
The royal family isn’t buying into this old saying. According to a Reuters report, the royal family has no plan to sell any shares in the troubled bank and may even consider buying more shares if the bank proceeds with a capital raise – something it may have to do to finance a multi-billion fee which it received from the U.S. Department of Justice.
The royal family first bought a 6.1 percent stake in the bank in mid-2014 and boosted its holdings to just shy of 10 percent. Reuters estimates their cumulative loss to be more than $1.2 billion.
Shares of Deutsche Bank were trading higher by around 0.30 percent mid-Friday afternoon.
Netflix: What The CEO Said
Netflix’s CEO Reed Hastings was talking at an industry conference on Friday and offered some concerning remarks which may have changed the company’s outlook. Specifically, the executive said that its chances of entering the highly lucrative and large Chinese market “ doesn’t look good.”
Hastings noted that other media companies who tried to enter the market, such as Disney (NYSE: DIS) and Apple (NASDAQ: AAPL) saw their services shut down.
“We’re focused on the rest of the world,” Bloomberg quoted Hastings as saying at the New Yorker TechFest in New York. “Disney, who is very good in China, had their movie service shut down. Apple, who is very good in China, had their movie service closed down. It doesn’t look good.”
Shares of Netflix were volatile during Friday’s trading session but were trading nearly flat Friday afternoon.