After peaking at $191.50 in July, Netflix's stock closed on Tuesday at $168.50 but this has created a buying opportunity for Netflix's stock, Rosenblatt Securities' Alan Gould argued in a research report. Granted, the inability to continue showing Disney's content is "clearly a loss" and it would be a mistake to "diminish its importance." Also, the parting of ways could create corporate tensions between the two companies and could put to rest the possibility of Disney acquiring Netflix. Related Links: Rosenblatt Raises Netflix Target To $200 After Quarter That Was 'Just Too Good' Netflix To Capture ABC's Female Following With Rhimes Deal
But Netflix remains a behemoth in the online video streaming space and the company continues to build a "content moat," which it is able to amortize over its global audience — which also happens to be the largest of its kind in the space. The
Bottom line, Netflix's recent sell-off is overblown and investors may consider buying on the dip.
Gould maintains a Buy rating and $200 price target.
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