Neflix (NFLX) Bear Continues to Express Caution as Shares Climb
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Price: $78.16 -0.1%
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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This morning it was learned that Netflix (NASDAQ: NFLX) entered a multi-year TV content deal with DreamWorks. Commenting in the deal, Michael Pachter of Wedbush expressed ongoing caution about content costs.
"The content is expected to begin airing in 2014, and should, in part, help to offset the gap in Netflix's children's content schedule created when it decided not to renew its agreement for certain content from Viacom's Nickelodeon
Network earlier this year," said Pachter.
"It appears that the deal for original programming is similar to other Netflix deals for original series. Under prior deals, Netflix does not own the rights to the underlying content, but instead agrees to fund a portion of the development costs in exchange for the rights to exhibit the content on an exclusive basis for a limited period of time," added Pachter. "We continue to believe that Netflix's original content deals are costly, and although we believe that they will serve to add subscribers for the company, it is not clear to us that original programming will have a lasting benefit."
Wedbush has an Underperform rating on Netflix (NASDAQ: NFLX) with a price target of $65.00.
For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.
Shares of Netflix closed at $213.99 yesterday.
"The content is expected to begin airing in 2014, and should, in part, help to offset the gap in Netflix's children's content schedule created when it decided not to renew its agreement for certain content from Viacom's Nickelodeon
Network earlier this year," said Pachter.
"It appears that the deal for original programming is similar to other Netflix deals for original series. Under prior deals, Netflix does not own the rights to the underlying content, but instead agrees to fund a portion of the development costs in exchange for the rights to exhibit the content on an exclusive basis for a limited period of time," added Pachter. "We continue to believe that Netflix's original content deals are costly, and although we believe that they will serve to add subscribers for the company, it is not clear to us that original programming will have a lasting benefit."
Wedbush has an Underperform rating on Netflix (NASDAQ: NFLX) with a price target of $65.00.
For an analyst ratings summary and ratings history on Netflix click here. For more ratings news on Netflix click here.
Shares of Netflix closed at $213.99 yesterday.
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