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Netflix Receives Downgrade, Price Target Elevation

Posted Apr 7th 2010 2:15PM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Apple Inc (AAPL), Netflix, Inc. (NFLX)

This morning, Barclay's downgraded Netflix (NFLX) to "equal weight" from "overweight." Although the brokerage cut the stock, it decided to issue a price target increase to the movie rental company, upping said price to $88 from $72.

Barclay's based the downgrade on valuation, but noted that the company will continue to benefit from its subscription-based model and its delivery service. NFLX offers two options for movie delivery, either receive a DVD in the mail or watch the movie directly over an Internet connection. With the many options in entertainment systems, the ability to watch a movie over an Internet connection (be it on a computer or a television connected to an Internet-ready device) is a major boon for NFLX. The downgrade stems from Barclay's belief that "the risk-reward in Netflix shares is now more balanced."

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Netflix upgraded: What does this mean for investors?

Posted Jun 18th 2009 8:00AM by Steven Mallas (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Netflix, Inc. (NFLX), Blockbuster Inc 'A' (BBI)

Netflix (NASDAQ: NFLX), a DVD-rental business that competes with Blockbuster (NYSE: BBI), was upgraded yesterday by Michael Pachter, an analyst with Wedbush Morgan Securities. He sees good tidings ahead for the company. He believes that Netflix will see higher margins and a healthy stream of earnings. His thesis centers on the fact that the subscriber base is likely to grow and that streaming movies will lower the cost of delivery.

Upgrades are tricky beasts. Ideally, an investor or, more likely, a trader, wants to be in the stock before the upgrade occurs. Buying a company after it's been upgraded requires a lot of due diligence. And you have to get over the fact that you might be buying at a high price.

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Netflix (NFLX) earnings power shares higher

Posted Oct 22nd 2007 6:15PM by Beth Gaston Moon (RSS feed)
Filed under: After the Bell, Major Movement, Earnings Reports, Good news, Netflix, Inc. (NFLX)

Poor Netflix (NYSE: NFLX). It's waging a constant and ferocious battle for customers with Blockbuster (NYSE: BBI), and its earnings report has to compete with the biggest company out there right now. But its service has always been nothing short of outstanding for me, so I thought I'd throw the online DVD-rental giant a little love.

After the close, NFLX said its third-quarter profit jumped 23% from year-ago levels, hitting $15.7 million, or 23 cents per share. Revenue was also on the move, rising 15% to $294 million. These headline figures were above analysts' estimates for per-share results of 15 cents on revenue of $286.5 million. The numbers also topped Netflix's own predictions for earnings of 11 to 19 cents on $284 million in sales. The total number of subscribers to Netflix services moved up 24% during the reporting period to nearly 7 million, from 5.7 million last year. Adjust your Netflix-friend lists accordingly.

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Can Netflix recover from disappointing earnings?

Posted Apr 23rd 2007 11:00AM by Beth Gaston Moon (RSS feed)
Filed under: Earnings Reports, Bad News, Competitive Strategy, Netflix, Inc. (NFLX), Blockbuster Inc 'A' (BBI)

Last Wednesday, NetFlix Inc. (NASDAQ: NFLX), the leader in mail-service DVD rentals, reported first-quarter earnings that missed analysts' expectations. Citing increased competitive pressure from Blockbuster (NYSE: BBI), the company reduced its outlook for subscriber growth, calling earlier hopes for 20 million subscribers by 2012 "unattainable" if BBI maintains its current pricing structure. NFLX failed to adjust its earnings guidance, but said revenue could hit $1.26 billion, down slightly from an earlier target of $1.3 billion.

Obviously self-satisfied, a spokesman for BBI was quoted on Bloomberg as noting that, "NetFlix obviously sees us as a formidable competitor because of the superiority of our offering." BBI expects its subscriber base to rise by more than a third, to three million customers.

NFLX shares gapped nearly 10% lower on the heels of this news and have not yet begun to recover, in terms of price action, though the stock is still hovering above chart support at the $20 level.

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