Piper says Netflix (NFLX) is continuing to take market share from Blockbuster (BBI). Web traffic trends continue to back up its case.
As you can see from the graph below, NFLX is not only continuing to destroy BBI in web traffic, the growth trend clearly favors netflix.com as well.
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According to compete.com, traffic in July 2008 is up over 25% for netflix.com from the previous July, but has crashed for blockbuster.com, down almost 50% for the same 12-month period.
In addition to the positive traffic trends for Netflix, Piper also believes that NFLX's own 2009 estimates are based on conservative assumptions. Therefore, the firm sees signficant upside potential for the stock.
Piper reiterates BUY on Netflix (NFLX).
