Netflix: Needham Upgrades to Hold, Boosts Target

Needham’s Charlie Wolf this morning raised his rating on Netflix (NFLX) to Hold from Under Perform, and lifted his price target on the Web-based video rental company to $25 from $22. Wolf said he has revised his model of the company’s business, and that his previous model “materially under-estimated the value of the company.” His previous model assumed the profitability of a subscriber was independent of how long someone has been a customer; but now he says that “the profitability of a subscriber increases with the length of time he maintains his subscription.”

Read the rest of this post


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »