Netflix (NFLX) and the Streaming Wars Message Board

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Technology Stocks : Netflix (NFLX) and the Streaming Wars

NFLX 107.54

+1.3%

12:59 PM EST

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From: i-node	7/30/2010 10:01:14 AM
	of 2280

I don't usually think too much about these guys opinions, but I'm glad to see this one.. This stock has been beaten up for outperforming any reasonable expectation. ------------------ Neflix (NFLX) shares are getting an early lift Friday from Morgan Stanley analyst Scott Devitt, who this morning raised his rating on the stock to Overweight from Equal Weight. Devitt offers three basic reasons for his more optimistic stance: * The recent stock price decline “is unwarranted.” He notes that the stock is off 18% since the company’s July 21 earnings report on higher-than-expected subscriber acquisition costs, a sequential increase in churn and lower ARPU. * He writes that he has “higher conviction” that the company will outperform expectations on subscribers, operating margins and EPS. * He is “increasingly optimistic” about the the company’s “long-term opportunity” due to an increasing addressable market and margin upside. “Investment in digital has significantly increased Netflix’s consumer value proposition,” he writes. Devitt calculates fair value on the stock as $140. NFLX in early trading is up $1.58, or 1.6%, to $99.60.

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