Netflix closed up 4.14% on Monday after rumours flew around Wall Street about a possible takeover by Disney, according to MarketWatch.
Netflix is also up over 1.5% in pre-market trading.
The chatter began on Friday, but has continued. In a note, R.W. Baird analyst William Power wrote about “recent M&A rumours” regarding “whether Disney, Apple or someone else, Netflix could become a target,” MarketWatch reports.
On Monday, Netflix stock reached its highest point since May. While Netflix was the darling of Wall Street in 2015, and the S&P’s top performer at +134%, it has been a rocky 2016. Since the start of 2016, Netflix had been down ~14% at the end of September.
The takeover rumours, however, could prove completely unfounded. While Drexel Hamilton analyst Tony Wible told Bloomberg the rally could be due to Disney/Netflix rumours, he also said that “Netflix hasn’t shown it wants to be acquired.” Even so, Disney has shown its interest in the streaming space with a recent blockbuster $1 billion investment in BAMTech, the MLB’s streaming tech arm.
Netflix reports earnings on October 17.