07:54 AM EDT, 07/15/2021 (MT Newswires) — GameStop (GME) shares fell more than 6% in premarket trading Thursday following news reports that Netflix (NFLX) has hired former Electronic Arts and Facebook executive Mike Verdu to lead its video games unit. Accordingly, Netflix is planning to offer video games on its platform within the next year without charging subscribers extra for the content, Bloomberg News reported, citing an unnamed person familiar with the situation.
Netflix (NFLX) hired Mike Verdu as vice president of game development, poaching him from Facebook Inc. (FB), where as vice president of content for Reality Labs, he oversaw Oculus Studios as well as the teams bringing second- and third- party virtual-reality games and other apps to Oculus virtual-reality headsets. Before joining Facebook, Verdu was senior vice president of mobile for Electronic Arts Inc. (EA), responsible for mobile game studios that operated franchises like “The Sims,” “Plants vs. Zombies” and “Star Wars: Galaxy of Heroes.”
Volume increased on Wednesday, and options sweeps picked up in the 07/16 550 call, 10/15 650 call adding about $2.5m in trades. Price action in extended hours and this morning pre-market hit a high of 566 and low of 556.50. Currently, Netflix is trading 558.38. (8:10 AM EST).
RSI is above 50 and rising suggesting the trend is strong.
We’ll watch and trade Netflix and gaming stocks today so stay tuned.
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