CBS's (CBS) recent decision to pull back some of its streaming content from Netflix's (NFLX) library comes at a surprise to the rental company. Although Netflix has moved into offering its own content, CBS still competes more directly with companies like Disney (DIS), News Corp. (NWS), Time Warner (TWX) and Viacom (VIA). So what value does CBS see in pulling its content?

Netflix (NFLX), which has established a strong foothold in the online streaming business, is now looking to bid for exclusive rights to original content. Currently, the arena of online movie sales and rental is dominated by services like Apple's (AAPL) iTunes, Netflix, Amazon.com (AMZN), Hulu etc. Our price estimate for Netflix stands at $119 -- significantly below the current market price, which is above $200.

iShares MSCI South Korea Index Fund (EWY) April put option implied volatility is at 25, July is at 29; compared to its 26-week average of 27, according to Track Data, suggesting less near-term price movement compared to outer month risk.

CBOE Volatility Index (VIX) closed up 1.53 to 19.44.

Option volume leaders today: Apple (AAPL), Citigroup (C), Netflix (NFLX), Kraft (KFT), according to Track Data.

Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Akamai's (AKAM) most important division is its media content delivery, constituting around 34% of its stock value by our estimates. The high value attributed to this division in our analysis comes from expectations of rapid growth in Akamai's revenue per media customer. As a content delivery company providing web content to its customers, Akamai competes with other players like InterNAP Network Services (INAP), Limelight Networks (LLNW) and Level 3 (LVLT).

Our price estimate for Akamai stands at $37.11, which is roughly in line with market price.

Analyst Upgrades

• Netflix (NFLX) and Zions Bancorp (ZION) to outperform from neutral at Credit Suisse.
• Akamai (AKAM) to buy from neutral at Merriman.
• CSX (CSX) to overweight from equal weight at Barclays.
• Nordstrom (JWN) to buy from neutral, WellCare (WCG) to conviction buy from buy and Humana (HUM) to neutral from sell at Goldman.
• E-Commerce China Dangdang (DANG) to overweight from neutral at Piper Jaffray.
• VMware (VMW) to buy from neutral at BofA/Merrill.
• Celanese (CE) to overweight from equal weight at Morgan Stanley.

Netflix, Inc. (NFLX) has pulled back from its 52-week high of $247.55. At the time of this writing, shares were exchanging hands for about $215. The 52-week low for the stock is $70.05.

We know that this company has been a great performer. Investors who bought at the lower end of the chart have been amply rewarded. But for those who don't own the name, is it time to buy? And, likewise, for those who do own it, is it time to sell?

Netflix, Inc. (NFLX) is an online movie rental company that operates with a two delivery methods: DVD shipments and online streaming. The shift to online streaming is growing in popularity and is evident as DVD shipped per subscriber is declining. More than one third of new subscribers are now going for streaming-only service, and Netflix is aggressively beefing up available content to attract new users. Netflix's growth will come from increasing its subscription base, and we believe that Netflix will look to international markets as a core element to its growth plans (beyond Canada). Although Netflix's business model is unique, it still competes with Apple's iTunes, Hulu, VoD services from pay-TV providers like Comcast, Time Warner Cable and others.

Analyst Upgrades

• Exxon Mobil (XOM), Netflix (NFLX), Noble Corp. (NE), Pioneer Natural (PXD) and Noble Energy (NBL) to buy from neutral at Goldman.
• Cenovus Energy (CVE) to conviction buy from neutral and Atwood Oceanics (ATW) to neutral from sell at Goldman as well.
• Southern Company (SO) to buy from hold at Citigroup.
• Chevron (CVX) to buy from neutral at BofA/Merrill.
• Ryder (R), Entergy (ETR) and Seaspan (SSW) to buy from hold at Jefferies.
• Gerdau (GGB), Crown Castle (CCI) and American Tower (AMT) to buy from neutral at UBS.
• Aon (AON) and Willis Group (WSH) to buy from neutral at Janney Capital.
• Ryland Group (RYL) to buy from neutral at Ticonderoga.

The sale of DVDs is going the way of the PC -- both have seen their market share dwindling. In a world of instant information, streaming videos are replacing DVDs. Last year, DVD sales fell by 43% to $7.8 billion from $13.7 billion in 2006, The Wall Street Journal reported.

There is another accompanying trend that reinforces streaming videos. Customers are spending more time online. Add the multiplier of time spent on social networks and it's streaming video hands down.

Sometimes, a big market washout like we had on Friday, when the S&P 500 fell 10 points and the Dow was down 170 points at its worst level, can reveal an awful lot about individual stocks. It's days like these when the winners stick out like sore thumbs and reveal just how much demand there is for their shares. On Friday, there was a collection of such stocks.

All the following names have had astounding gains in the past year, and it sure looks like they are prepared to continue on that same trajectory. These stocks stuck out like a sore thumb on Friday because of significant buying interest in a terrible broad market tape. None of the moves in these names was driven by news

Viacom (VIA) competes with other media and broadcasting companies like Time Warner (TWX), News Corp. (NWS), CBS (CBS) and Disney (DIS) in the media and entertainment business. Our price estimate for Viacom's stock stands at $58.36, which is a roughly 15% premium to market price.

The company recently signed a deal with Hulu to make more of its TV content available on the subscription/ad-supported portal. In its press release Viacom stated that:

Akamai is a content delivery company that delivers web content for its customers besides offering additional value added services like advertising solutions and site acceleration. It competes with other players like InterNAP Network Services, Limelight Networks and Level 3 in this business and delivers close to 20% of global web traffic. Our price estimate for Akamai stands at $37.11, which is about 23% below the current market price.

The company recently released its Q4 2010 earnings, and we have increased our price estimate to $37.11 based on continued fast growth in revenues across all verticals. Our new estimates value the media content delivery segment as the most valuable for Akamai. We previously had e-commerce as the most valuable segment, but the rebound in media revenues has impressed us leading us to change our forecasts and the way we view this business.

Analyst Upgrades

• U.S. Steel (X) to buy from neutral and Barnes & Noble (BKS) to neutral from sell at Goldman.
• Salesforce.com (CRM) to buy from hold at Jefferies.
• Dollar Tree (DLTR) to overweight from equal weight at Barclays.
• Edison International (EIX) to hold from sell at Citigroup.
• Analog Devices (ADI) to overweight from neutral at JPMorgan.

Netflix (NFLX) overall option implied volatility is at 45, according to Track Data, below its 26-week average of 52, suggesting decreasing price movement.

Panera Bread (PNRA) overall option implied volatility is at 37, according to Track Data, above its 26-week average of 32 into its release of Q4 results, suggesting larger price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.