Netflix On The Move, But Is It Overpriced?
Wedbush Morgan analyst Michael Pachter predicted Wednesday that business will boom for online video renter Netflix. In a note to clients, Pachter forecast that much of Netflix's growth will come as more and more movies become available for immediate streaming. He also predicted that as the size of Netflix's subscriber base expands, prices for movie rentals will come down. Nevertheless, Pachter downgraded the company's stock to "hold" from "buy," noting that it had already become too expensive.