Netflix’s (NFLX) 20% drop over the past month perplexes Piper Jaffray. No concrete news has come out that should have brought down the stock, the firm says. They recommend buying on weakness.
The downturn is most likely the result of the overall dour economic picture and market decline, but NFLX is at least supposed to be recession-resistant. Renting movies is a cheap form of entertainment people trade-down to.
Piper reiterates BUY on Netflix (NFLX), target price $45.
Blockbuster (BBI): We’re A Good Play In A Recession! (BBI, NFLX)
Blockbuster & Netflix: Citi Cautiously Optimistic About Shift to Digital (BBI, NFLX)
Netflix: We’ve Got Five Years Left On Mail-Order DVD Business (NFLX)
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.