Netflix Stock Upgraded29 Dec, 2008 By: Erik Gruenwedel
The economy remains deadlocked in recession, but the good times continue for Netflix, which saw it shares upgraded last week to “buy” from “hold” by online analyst TheStreet.com (TSC).
Citing the Los Gatos, Calif.-based online DVD rental pioneer’s earnings-per-share growth (up 43.5% in the most recent quarter), growth in net income (up 30.2%), revenue growth (up 18.3%), reasonable debt levels and return on equity, TSC said Netflix remained a steady force in an uncertain economy.
“Although the company may harbor some minor weaknesses, we feel [the weaknesses] are unlikely to have a significant impact on results,” said TSC in a statement.
Shares of media companies and retailers such as Walt Disney Co., Time Warner (which owns Warner Home Video), News Corp. (parent of 20th Century Fox Home Entertainment), Viacom (parent of Paramount Home Entertainment), Best Buy, Trans World Entertainment, Blockbuster and Netflix all ended the day (Dec. 29) down slightly.