Digest: Netflix looking good
EmptyNetflix looking good
Netflix likely will continue to exceed estimates the rest of this year thanks in part to continued growth in the DVD rental by mail business, Piper Jaffray analyst Michael Olson said Monday as he moved his target on the stock from $36 to $40. By analyzing Web site data, Olson said he was able to deduce that visits to Netflix's site rose 18% in the past three months, compared with a drop of 6% at Blockbuster's Total Access DVD rental site. Blockbuster's fourth-quarter results -- where it reported stagnant online subscription growth -- showed "strength in Netflix's improving market position," he said. Netflix shares rose 5.3% to $38.17 Monday, while Blockbuster shares climbed 7.6% to $3.55.
Finance topper to leave EA
Electronic Arts said Monday that CFO Warren Jenson will leave the video game publisher, which is pursuing a hostile takeover of rival Take-Two Interactive Software. EA did not give a reason for his departure, but said Jenson will stay to help the company close its fiscal year, which ends March 31, and could remain through September to ensure a smooth transition. A replacement hasn't been named. EA took its $2 billion all-cash bid for Take-Two directly to stockholders this month. Take-Two has resisted the bid, saying it does not account for expectations of a blockbuster debut for its "Grand Theft Auto 4" game April 29.