UPDATE: Alfred Fried & Company Initiates Netflix at Underperform; Not a Sound Acquisition

Alfred Fried & Company initiated coverage on Netflix

with an Underperform rating as it believes the company makes for a risky acquisition player. Alfred Fried & Company noted, "On the surface, some investors think $4 billion is bite sized but NFLX is not an A La Carte investment proposition. The real cost to acquire NFLX is closer to $10 billion in our view. Management's investment expense guidance and a large $5 billion content liability could quickly turn a light meal into a strategic corporate ulcer, in our view." Netflix closed at $81.48 on Thursday.