Netflix is up about 9.8% to around $73.10 in early trading today — continuing a hot streak that has resulted in a 33.7% leap for the home video company since the beginning of October. The latest explosion appears to have been ignited by Morgan Stanley’s Scott Devitt who upgraded his recommendation this morning to “overweight” from “equal-weight” with a target price of $85. The reason: He no longer believes that Amazon will “continue to invest substantial resources into building a tiered streaming offering” that competes with Netflix. Instead “we are seeing a much more tactical approach to content acquisition [by Amazon], and we believe the company is focusing more on acquiring boutique film and serialized television content. Additionally, Netflix is also deploying resources into original programming.” Indeed, Devitt says that when original series including House Of Cards and Arrested Development debut next year “we could potentially see a renewed interest” in Netflix. His upgrade follows last week’s strong endorsements of Netflix shares by Citi’s Mark Mahaney and hedge fund investor Whitney Tilson.
Netflix Shares Rise After Analyst Says Fears Of Amazon Competition Are “Overblown”
What's Hot on Deadline
'Westworld' Finale Postmortem: EP Jonathan Nolan On Season 2's Samurai World, Missing Characters & Dr. Ford's Fate
Shake-Up At 'Duck Dynasty' Producer Gurney Productions: Founders Placed On "Temporary Leave Of Absence"
'Fantastic Beasts' Bests $600M WW; 'Moana' Mints $180M; 'Doctor Strange' Ices 'Deadpool', 'Iron Man 2' - Intl Box Office
Latest Business News
- Note To Oscar Host Jimmy Kimmel: Johnny Carson’s Suit Patterns Are Up For Sale
- L.A. Ramping Up Security After Threat To Universal City Metro Station
- Music Manager & Pharrell Williams Collaborator Rob Walker Joins UTA
- Post-Thanskgiving Plummet Knocks Stuffing Out Of Broadway Box Office
- Viacom CEO: It’s Time To Focus On Growth Potential Following Year-Long “Drama”
- Bill Cosby Dealt Legal Blow As Judge Rules Depositions Can Be Used In 2004 Rape Trial