Morgan Stanley Comments On Netflix's Qwikster Back-step

Morgan Stanley has published a research report on Netflix

after the company back peddled on its decision to split its' services among two companies. In the report, Morgan Stanley writes, "By recanting its decision to create two semi-autonomous brands (one for DVD-by-mail and another for its growing streaming business), Netflix is not only showing its sub base a “good faith gesture” but it is also back to leveraging one of its most powerful assets, its cross-platform recommendation algorithm. We believe this is a step in the right direction for the business model and should be viewed favorably by the market." Morgan Stanley maintains its Equal-weight rating on Netflix, which closed Friday at $117.21.