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.
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