Netflix, Inc. NFLX shares are down nearly 15% since Amazon announced Prime Instant Video, Piper Jaffray reports.
“We believe this is an overreaction for two reasons: 1) our comparison suggests the Netflix streaming library and device ecosystem are significantly more extensive than Amazon's, and 2) few, if any, competitors have the resources to make the necessary investment in content to compete with Netflix.
“We estimate Netflix will spend $1.3-$1.6b on streaming content in CY12. Overall, we believe many of the assumptions underlying our Netflix estimates could prove conservative and we see the recent pullback in shares of NFLX as a buying opportunity.”
Netflix closed Thursday at $203.37.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.