Netflix's stock has careened up and down wildly in the past week due to a flurry of conflicting analyst reports.
Shares in the Web video-rental service fell 8 percent to $67. 75 in morning trading after Merrill Lynch/BofA downgraded the stock. Yesterday, Netflix closed up 10 percent after Morgan Stanley analyst Scott Devitt raised his rating and boosted his price target to $85.
Last Wednesday, Mark Mahaney, a Citigroup analyst also helped send the stock price up when he called Netflix a "screaming buy." The upgrades were based in part on the belief that Amazon isn't as big a threat as some feared and the bet is the Seattle-based retailer is unwilling to spend as much as Netflix to acquire movies and TV shows.
That's a theory that Netflix CEO Reed Hastings has helped to promote. He told The Wall Street Journal last month that Netflix's content budget is three-times higher than Amazon's. He also called Amazon's video service a "confusing mess."
Related stories
- Cowabunga! Nickelodeon comes to Hulu
- Get a $20 Skype credit and 1-month Netflix trial for free
- ... [Read more]
No comments:
Post a Comment