Dawson James Starts Netflix (NFLX) at Sell, Sees Rising Costs and Increased Competition
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Price: $228.56 -3.6%
Rating Summary:
15 Buy, 18 Hold, 10 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
15 Buy, 18 Hold, 10 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
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Dawson James initiates coverage on Netflix (NASDAQ: NFLX) with a Sell and $181 downside price target.
The firm highlights:
1): Average monthly revenue per paid subscriber fell 8.7% from $13.30 in FY2009 to $12.19 in FY2010
2) increased competition from Hulu, Amazon (Nasdaq: AMZN), Facebook, and Google (Nasdaq: GOOG).
3. Acquiring streaming television content will likely continue to become more expensive
4). Inexpensive and unlimited bandwidth are key drivers of success for Netflix’s streaming service. Level 3’s (Nasdaq: LVLT) recent announcement of the acquisition of Global Crossing (Nasdaq: GLBC) represents a possible shift in pricing power towards the content delivery network providers.
Shares of Netflix are off the highs on the new Sell rating but are still sharply higher after announcing a deal today to expand in Latin America.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
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The firm highlights:
1): Average monthly revenue per paid subscriber fell 8.7% from $13.30 in FY2009 to $12.19 in FY2010
2) increased competition from Hulu, Amazon (Nasdaq: AMZN), Facebook, and Google (Nasdaq: GOOG).
3. Acquiring streaming television content will likely continue to become more expensive
4). Inexpensive and unlimited bandwidth are key drivers of success for Netflix’s streaming service. Level 3’s (Nasdaq: LVLT) recent announcement of the acquisition of Global Crossing (Nasdaq: GLBC) represents a possible shift in pricing power towards the content delivery network providers.
Shares of Netflix are off the highs on the new Sell rating but are still sharply higher after announcing a deal today to expand in Latin America.
For more ratings news on Netflix click here and for the rating history of Netflix click here.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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