Stock Alert - Netflix

Shares in Netflix (NASDAQ:NFLX) plunged on news of failed contract renewal negotiations with Starz LLC, reports Bloomberg. Once a favourite amongst short sellers, short interest has declined from the annual high seen in March of 15% to under 9% of the total shares outstanding on loan. Yet at this level, there remains a substantial investor base which is sceptical about the outlook for the online film provider, believing the shares to be overvalued. Long only investors who lend their shares have increased holdings by 11% to 13 million shares, despite the price having fallen from a two year high since July.