Netflix – Shares of Netflix Inc. got a boost Tuesday after an analyst at Credit Suisse, the landlord raised online movie after a recent fall, and said any perception of risk by strengthening competition is room in the movie in real time now, “more fully into account” in action .
Spark: analyst John Blackledge Update Los Gatos, Calif. Netflix to “overweight” from “neutral” and said he did not expect a significant impact on movie service Netflix streaming new Amazon, offers its members the premium they pay $ 79 per year for the transport of low or no cost in your order.
BACKGROUND: The announcement of Amazon.com, Inc. and news that Warner Bros. has been testing a service to offer movies via Facebook, has a brake on Netflix shares recently. The company has its name in order to rent movies by mail and shipping everywhere in red envelopes. But in recent years to its streaming service that allows people to focus the movies and television programs over the Internet.
ANALYSIS: Blackledge said that Warner Bros. does not see Facebook as a service to offer significant competition to Netflix. First, it is just a test for a film. Second, the films are rented on a la carte, rather than a subscription model like Netflix. This business model, noted the analyst, that “turned out to be an effective competitor” from Netflix.
“(Netflix) has over the competition in the service to the rental application for several years, adapted to this point, cable companies namely Apple and the satellite … (Amazon) a la carte service, etc.” said Blackledge.
Based on a survey by Credit Suisse analyst also said the new streaming service, Amazon is unlikely that Netflix users terminate their subscription. Blackledge raised price target to $ 280 $ 180 and said that Netflix is ??probably looking for further expansion in international markets in the second half of this year and beyond.
SOCIAL ACTION: up $ 9.04, or 4.2 percent, to $ 221.88 in late trading. The stock reached a record high of $ 247.55 last month, before some ground.